Financial institution of America warn of US stagflation threat, however count on it to be not too terrible

Financial institution of America economists say that the chance of US stagflation is rising.

They cite “progress adverse insurance policies”

• deportations of undocumented employees
• authorities job cuts
• larger tariffs threats
• heightening threat that fiscal stimulus will likely be modest and delayed

On that final level BoA nod to the politics of Republicans having solely a slender within the Home of Representatives.

Ona brighter, or at the least much less darkish, observe NoA count on solely a delicate stagflation:

• progress slows however stays at or above development this yr (within the low 2s)
• inflation picks up, primarily due to tariffs, however stays beneath three%

And add that they count on that if gowth slides additional, or inflation accelerates an excessive amount of, that Trump will collapse and restrict tariffs, spending cuts and immigration restrictions.

Newest on tariffs right here:

• Trump Confirms tariffs on Canada, Mexico ‘will go ahead’

As a ps. on that put up an unnamed Trump official says a choice has not but been made.

This text was written by Aaron Cutchburt at www.ubaidahsan.com.



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