Stagflation fears rise as Trump tariffs take effect, economy slows

[BumRushDaShow]

Source: NBC News/CNBC

March 4, 2025, 4:16 PM EST


A growth scare in the economy has accompanied worries over a resurgence in inflation, in turn potentially rekindling an ugly condition that the U.S. has not seen in 50 years.

Fears over “stagflation” have come as President Donald Trump seems determined to slap tariffs on virtually anything that comes into the country at the same time that multiple indicators are pointing to a pullback in activity.

That dual threat of higher prices and slower growth is causing angst among consumers, business leaders and policymakers, not to mention investors who have been dumping stocks and scooping up bonds lately.

“Directionally, it is stagflation,” said Mark Zandi, chief economist at Moody’s Analytics. “It’s higher inflation and weaker economic growth that is the result of policy — tariff policy and immigration policy.” The phenomenon, not seen since the dark days of hyperinflation and sagging growth in the 1970s and early ’80s, has primarily manifested itself lately in “soft” data such as sentiment surveys and supply manager indexes.

Read more: https://www.nbcnews.com/business/economy/trump-tariffs-stoke-stagflation-fears-rcna194767

[SunSeeker]

1. Trumpenomics. Brought to you by the idiot who declared bankruptcy 6 times. nt

[AmericaUnderSiege]

2. And in record time.

Usually it takes years for an oligarch puppet to fuck the American economy.

I swear we should have a mock awards show for these bastards, recognizing their "accomplishments."

[markodochartaigh]

8. In the US it is usually the Fed

which tightens the economy slowly into recession. This is a first. Trump's haphazard tariffs and widespread firings are meant to bust the wheels off the wagon of the economy. How fast, or how far the bust will go is anyone's guess.

[AmericaUnderSiege]

10. My best guess is it's just a tactic to give Moscow more time in Ukraine.

If they actually believe they'll derail the West with this bullshit, they're a lot dumber than we thought. And more doomed.

[OrlandoDem2]

3. I have been thinking this kind of article might emerge. How could we not?

[progree]

4. "and supply manager indexes." Today we have the service sector surveys -- ISM and S&P

On Monday, we had the corresponding manufacturing sector surveys, and the ISM one was pretty dismal. I didn't see the S&P one.

[progree]

5. Well, Krasnov's stock market has stagnated but not inflated - yesterday was first S&P 500 close below where

it stood at election day's close (Nov 5)
https://www.democraticunderground.com/111699775

The "Trump Trade" has been a RW bragging point up to now.

[BumRushDaShow]

6. ALL the markets

are due for a 10% correction (especially the Dow)!

[BrianTheEVGuy]

7. The Great Trumpression is here NT

[meow2u3]

9. I remember the stagflation of the 1970s

I shuddered when my mom sent me to the store to pick up ingredients for cake or dinner, only to come home to tell her the prices almost doubled from the costs of a week prior. For instance, a 5 pound bag of store brand flour was 50 cents in April, 1974; two days later, the same bag the following week was 75 cents. We could hardly afford to eat and we were a family of 6. Stagflation has real life consequences rich anal apertures don't feel.