Worry about stagflation begins to grow in U.S.: AP

(Xinhua) 09:03, May 31, 2022

WASHINGTON, May 30 (Xinhua) -- U.S. economists are sounding the alarm about possible stagflation, which means high inflation mixed with a weak job market to cause "a toxic brew that punishes consumers and befuddles economists," said a recent article by the Associated Press.

Though economists broadly agree that the U.S. economy has enough oomph to avoid a recession, but problems, including rocketing consumer prices caused by the Russia-Ukraine conflict, are piling up, the article said.

The Federal Reserve and other central banks are "scrambling to catch up by aggressively raising interest rates" to cool growth enough to tame inflation without causing a recession, but many fear that the Federal Reserve "will end up botching it and will clobber the economy without delivering a knockout blow to inflation," according to the article.

"Few think stagflation is in sight. But as a longer-term threat, it can no longer be dismissed," it said. 

(Web editor: Peng Yukai, Liang Jun)


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