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
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.
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