An absence of significant economic slowdown doesn't mean no signs of stagflation risks. Here's why
Keep watch for signs of stagflation, even if there isn't a significant slowdown in the economy, according to J.P. Morgan.
TL;DR
- J.P. Morgan warns of stagflation risks even without significant economic slowdown.
- Oil prices above $100 a barrel for an extended period could trigger stagflation.
- Record issuance in the AI industry and government deficits impact pricing.
- El Niño and the Middle East conflict weigh on the global economic outlook.
- Coordinated central bank tightening cycles are occurring due to rising food and energy prices.
- Core inflation remains sticky, with no short-term turnaround expected.