A top U.S. economist issued a warning after a report Thursday showed the United States posted a second consecutive quarter of negative growth.
Gross domestic product fell at a 0.9 percent annualized rate last quarter, the federal government said. The country’s GDP contracted at a 1.6 percent pace in the first quarter.
Mohamed A. El-Erian, a former Obama administration official and the president of Queens’ College at the University of Cambridge, said the numbers show it’s “an economy that’s weakening at a much faster rate than most people expected.”
“Inflation is not going to come down fast enough given how fast the economy is weakening and that’s going to put the Fed in the same dilemma it been in,” El-Erian told CNBC on Thursday morning. He added on Twitter that with an “unfavorable miss on jobless claims” combined with the negative GDP, there is a risk of “deepening stagflation and flashing red recession.”…