U.S. Economy Faces Potential Stagflation Challenges

According to Odaily, BCA Research's Chief Strategist Dhaval Joshi has expressed concerns about the U.S. potentially entering a phase of 'mini-stagflation' as early as the second quarter of this year. Joshi noted that inflation appears to be stuck above the Federal Reserve's 2% target. This persistent inflation could deter the Federal Reserve from further interest rate cuts this year, potentially exacerbating the slowdown in economic growth. He emphasized that this situation might unfold sooner rather than later. Additionally, Barry Bannister, Managing Director and Chief Equity Strategist at Stifel, shared his outlook with Business Insider, predicting that the U.S. might experience moderate stagflation in the latter half of 2025. Bannister warned that such a scenario could result in a 10% decline in U.S. stock markets.