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US faces risk of long stagflation struggle: Moody’s

September 27, 2022

Concerns about a return of 1970s-style stagflation have risen as economic growth slows and price pressures remain high despite the most aggressive withdrawal of stimulus by the Federal Reserve since the 1980s. The murkier outlook has compelled many CFOs to redraw their plans for prices, borrowing and wages.

The economy will probably not grow this year, Fannie Mae said on Wednesday. Next year, high inflation, Fed tightening and a slump in the housing market will probably push down gross domestic product by 0.5%.

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