Stagflation Concerns Resurface as U.S. Economic Growth Stalls

Recent data shows the U.S. economy grew at its slowest pace since 2022, sparking renewed fears of stagflation amid rising inflation and cooling economic activity.

U.S. GDP growth slowed to 1.6% in the first quarter of 2024, below the forecasted 2.5%, indicating a significant economic deceleration.
Inflation remains persistent with core inflation rates rising, particularly in the services sector, challenging the Federal Reserve's strategies.
Despite the economic slowdown, consumer spending on services surged, suggesting underlying economic resilience.
Federal Reserve officials are cautious about cutting interest rates this year, with some considering additional hikes if inflation does not ease.
Experts warn that the current economic trends may lead to a stagflation scenario similar to the 1970s, affecting markets and economic stability.