Some economists are warning about ‘stagflation.’ What it could mean for your money

Conflict in Iran has pushed oil prices higher, prompting some experts to flag a potential stagflation risk for the U.S. economy (simultaneous inflationary pressure and growth weakness). That raises downside risk to GDP growth and complicates Fed policy, increasing the likelihood of prolonged higher rates and pressure on real returns across portfolios.

Analysis

Conflict in Iran has pushed oil prices higher, prompting some experts to flag a potential stagflation risk for the U.S. economy (simultaneous inflationary pressure and growth weakness). That raises downside risk to GDP growth and complicates Fed policy, increasing the likelihood of prolonged higher rates and pressure on real returns across portfolios.