With the economic tumult, a serious concern has emerged: stagflation
1. Tariffs raise concerns about stagflation and economic slowdown in the U.S. 2. GDP contracted by 0.3% in Q1 2025, the first quarterly decline since 2022. 3. Uncertainty from tariffs affects business investments and consumer price expectations. 4. Stagflation poses challenges for Federal Reserve's dual mandate of stable prices and employment. 5. Economic dislocation could persist if tariff policies remain unclear.