🚨 STAGFLATION IS HERE — AND THE FED IS TRAPPED
The latest data just confirmed the worst-case scenario:
📉 GDP (Q1): 2.0% (missed 2.2%) → Growth is slowing
📈 Core PCE: 4.30% (vs 4.10% forecast, up from 2.70%) → Inflation surging
💼 Jobless Claims: 189K (strong labor market)
This is the definition of stagflation.
And here’s the problem:
➡️ Inflation too high to CUT rates
➡️ Economy too weak to HIKE aggressively
➡️ Strong jobs remove urgency to stimulate
The Fed is stuck.
Oil at $120 is fueling the fire. Every inflation print is rising. And Powell already warned — the worst may not even be here yet.
No easy moves. No quick fixes.
This is where policy mistakes happen.
