US Economy Faces Stagflation Threats Amid Slowing Growth and Rising Inflation

Recent data indicates a troubling economic pattern, with GDP growth decelerating sharply to 1.6% in the first quarter of 2024, while inflation persists above the Federal Reserve's 2% target.

The U.S. economy is showing signs of stagflation, combining low growth rates with high inflation, a scenario reminiscent of the 1970s.
Despite governmental efforts and spending, indicators suggest that stagflation could persist if current economic policies continue.
Experts warn that handling stagflation is complex as measures to curb inflation could further suppress economic growth.
Investors and market analysts express concern, noting the impact of rising bond yields and the potential for continued market volatility.
Federal Reserve faces pressure to maintain tight monetary policy, complicating efforts to stimulate growth or cut rates.