Stagflation Alarm: Inflation Still Hot While Growth Slows—And the Fed Is About to Make It Worse

The Ghost of the 1970s Is Back—And No One Wants to Talk About It Stagflation—a toxic mix of high inflation and stagnant growth—was once thought to be a relic of the 1970s. But look around. Inflation is stubborn. Prices on essentials—food up 3.2%, shelter up 3.6%, electricity up 6.2%—keep grinding higher. Meanwhile, job growth is softening, productivity is slowing, and real wages have been largely flat when adjusted for inflation. So why is the Fed even considering a rate cut? Because the labor market is showing signs of weakness. That’s right—instead of fighting inflation, they’re choosing to fight unemployment. The trade-off? Your purchasing power continues to erode while your grocery bill climbs and your rent devours half your paycheck. If…