The Fed's emergency cut could lead to stagflation, one expert said - Business Insider

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Here's how one expert says the Fed's emergency rate cut could create a toxic situation where higher prices conflict with coronavirus-stricken growth

Bracing for stagflation

There have been some signs of this kind of economic environment in China, where the virus originated. Prices have skyrocketed amid government shutdowns, according to Zhiwei Ren, managing director of Penn Mutual Asset Management. But, Ren thinks that the situation is likely to correct itself when the spread of the virus slows and production returns to normal.

"We talk about the fact that there's no inflation in the economy, but if you look at the inflation in financial assets, it's been profound," she said. Inflation in prices in the US has been low over the last decade, while the stock market has enjoyed a compound annual growth rate over 14% in the same time period.

 

شكرًا لك على تعليقك. سيتم نشر تعليقك بعد مراجعته.

What if the Coronavirus was created by nasa to try and slow down the chinese and Russia because of paranoias and politics by mating the flu with a water bear?

I could totally save this country.

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المملكة العربية السعودية أحدث الأخبار, المملكة العربية السعودية عناوين

Similar News:يمكنك أيضًا قراءة قصص إخبارية مشابهة لهذه التي قمنا بجمعها من مصادر إخبارية أخرى.

These 7 events also caused emergency interest rate cuts from the Fed - Business Insider'The fundamentals of the US economy remain strong. However, the coronavirus poses evolving risks to economic activity,' the FOMC said in a statement.
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Homebuilder stocks jump on Fed rate cut amid coronavirus outbreakThe homebuilders' ETF (ITB) is near the high of the session, up almost 2.3% and up 6.2% week-to-date. who do you think you are fooling with this stuff cnbc? boomers do not use twitter It’s called a “FED Cat Bounce”
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