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‘Stagflation-lite?’ Economy may face fresh threat of slower growth and rising inflation - MarketWatch

1. U.S. may face 'stagflation lite' with low growth and rising inflation. 2. GDP growth predicted below 2% in 2025; inflation between 3%-3.5%. 3. Tariffs and immigration policies create uncertainty, impacting business investment. 4. Inflation pressures already exist, surpassing Fed's 2% target. 5. Consumer spending boosts GDP; immigration plays a crucial role.

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FAQ

Why Bearish?

Uncertainty from tariffs and inflation may negatively influence market confidence, reminiscent of past economic downturns.

How important is it?

Economic indicators and policy implications greatly influence stock market sentiment, including DJIA.

Why Short Term?

Immediate concerns over inflation and policy changes could affect DJIA performance quickly.

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