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Fortune
Fortune
Eleanor Pringle

‘The smell of stagflation’ is mounting as Trump’s Liberation Day arrives

US President Donald Trump (Credit: Bonnie Cash—UPI/Bloomberg - Getty Images)
  • Fears of stagflation are rising as President Trump prepares to implement new tariffs, worsening trade tensions and potentially slowing economic growth while inflation ticks higher. Analysts and economists, including those from Deutsche Bank and Goldman Sachs, warn of weakening economic indicators, higher inflation expectations, and an increased risk of recession, prompting speculation that the Federal Reserve may sit tight on rate cuts until it has more data.

As the clock ticks down to President Trump's 'Liberation Day',fears of stagflation—sluggish growth with rising prices—are only mounting.

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