News Analysis Wall Street is split on the U.S. economy possibly facing a stagflation threat in the post-pandemic recovery. Stagflation—a trifecta of slowing economic growth, rising inflation, and high unemployment—is the talk of the finance industry. Goldman Sachs analysts recently revealed that stagflation is “the most common word in client conversation.” The widespread discussions come as slowing economic data, surging inflation, an escalating supply chain crisis, and intensifying energy woes dominate business headlines. Bank of America Global Research recently declared that “stagflation is here.” However, Jean Boivin, head of the BlackRock Investment Institute, expects growth to accelerate as tighter inventories ease. “The inflation pressures we expected are here. This is not stagflation, and we remain pro-risk,” he wrote in a weekly commentary report (pdf) last month. Market analysts are combing through the data to determine if the trajectory of the U.S. economy over the next 12 months. A Look at …
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