It is looking increasingly likely that the US will be facing a STAGFLATION. Why?

 Let's delve into the latest economic statistics to understand our outlook.

The core PCE (mom) has been trending up since last Nov 2024 as shown by the above chart.

The 5-year inflation expectation has revised up to 4.1% which is way above the Fed's targeted 2% inflation rate.

The GDP projection has declined again to -2.8%.

The US is facing a stagflation consternation with falling GDP growth and rising inflation.