Monday, May 16, 2022

ARE BAD TIMES AHEAD?

Ex-Federal Reserve chair says US economy is heading toward period of stagflation for first time since 1970s: CEO of Goldman Sachs says risk of America falling into a recession 'is very, very high'

 

Daily Mail 

May 16, 2022

 


Ex-Fed chair says US economy is heading toward stagflation for the first time since the

The former head of the Federal Reserve says the US is heading toward a period of high inflation and low economic growth as the heads of Goldman Sachs and other global banks warn that a recession is coming. 

Ben Bernake, who led the Fed through the 2008 financial crisis, says 'stagflation' may be on the horizon. 'Even under the benign scenario, we should have a slowing economy,' he told the New York Times. 

Average prices are up by 8.3 percent from last year. 'And inflation's still too high but coming down. So there should be a period in the next year or two where growth is low, unemployment is at least up a little bit and inflation is still high. So you could call that stagflation,' Bernake added.

Stagflation, a term coined in the 1960s, refers to low economic growth combined with high unemployment and high prices.

No comments: