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US Federal Reserve Board Chairman Jerome Powell speaks during a news conference at the headquarters of the Federal Reserve on January 31, 2024 in Washington, DC.
US Federal Reserve Board Chairman Jerome Powell.

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  • The first-quarter GDP report surprised investors with disappointing growth, while consumer prices kept rising.
  • The provides the backdrop for stagflation, which can't be combated with rate cuts.
  • The 1970s offer a warning of what could happen if inflation spirals out of control.

The latest GDP and inflation readings were what investors were least eager to see, and could hint at serious trouble ahead.

"This was a worst of both worlds report – slower than expected growth, higher than expected inflation," wrote David Donabedian, chief investment officer of CIBC Private Wealth US.

Tags
economy, Markets, Stagflation, fed-rate-cuts-forecast, fed-rate-hikes, 1970s, Inflation, gdp-growth, recession-outlook, inflation-outlook, us-inflation-outlook, stagflation-risk, stagflation-crisis
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The US economy may be barrelling towards stagflation, an outcome worse than rec…