Stagflation: What is it, and is the U.S. economy in it right now?

Federal Reserve Chair Jerome Powell said Wednesday there was no sign of stagflation in the economy, even as inflation remains stubbornly high and some signs of slowing growth have started to emerge.

Federal Reserve Chair Jerome Powell said Wednesday there was no sign of stagflation in the economy, even as inflation remains stubbornly high and some signs of slowing growth have started to emerge.

In remarks after the release of the Fed's decision Wednesday to leave interest rates unchanged, Powell said he didn't "really understand where talk of a stagflation scenario is coming from" given the preponderance of solid economic data.

Historically, stagflation occurs when high unemployment, slow economic growth and high inflation all happen at the same time.

Powell compared today's economy, with both inflation rates and the unemployment rate below 4%, to that of the 1970s, the decade when most economists consider stagflation to have taken root.

“I don’t see the stag, or the ’flation,” he said.

https://www.nbcnews.com/business/economy/stagflation-us-economy-what-is-it-are-we-there-rcna150275

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