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Monday, March 17, 2025

US is in a real danger of falling into stagflation.

 5-year US inflation expectations: 3.9%


1-year inflation expectation: 4.9%


Consumer sentiment: 54.2

The above charts are showing higher inflation in the future and weaker consumer sentiment.  This is indicating that economic growth will be slowing down in the face of higher inflation and employment will decline due to lower economic growth.  All these meet the definition of stagflation.

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