Jill On Money: Stagflation puts Fed in a bind

As expected, the Federal Reserve did not alter monetary policy in its most recent meeting. Despite the inaction, current economic conditions must be throwing central bankers for a loop. The Delta variant has cooled down economic growth, while inflation remains elevated. Does that mean that the US is about to enter a period of 1960s-1970 s style stagflation?

The term “stagflation” was coined in 1965 by the British politician Iain Macleod, who at the time declared in a speech to the House of Commons, “We now have the worst of both worlds — not just inflation on the one side or stagnation on the other, but both of them together.

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