With persistent inflation, war-induced energy price shocks, and rising geopolitical tensions gripping the global economy over the past four years, some of Wall Street’s most-respected names have repeatedly warned the U.S. could be headed for a repeat of the stagflationary 1970s.
Even JPMorgan Chase CEO Jamie Dimon has suggested on multiple occasions that stagflation could make a comeback, with his latest warning coming at AllianceBernstein’s Strategic Decisions conference just last week. Dimon didn’t outright predict a repeat of the toxic combination of high inflation and anemic economic growth that was last seen in the U.S. in the 1970s at the conference, but he said he believes the odds of a nightmare stagflationary scenario are “much higher” than most experts appreciate.
