Investopedia: Rising Inflation and Slowing Growth Are Investors' Worst Nightmare

Peter Ricchiuti

Peter Ricchiuti, senior professor of practice and research director of Burkenroad Reports, was interviewed by Investopedia about the challenges of investing during stagflation. 

The Fed faces an impossible balancing act, according to Ricchiuti. "The administration is saying cut rates, cut rates, get the economy going," but policymakers know "the other side" of that equation: "You cut rates, economy gets going, and inflation soars." Making matters worse, he noted that while the 1970s stagflation "wasn't our fault" due to OPEC oil shocks, "This time it's entirely our fault if it happens," driven by policy choices like tariffs whose inflationary impact "really hasn't hit yet."

To read the story in its entirety, visit investopedia.com:

https://www.investopedia.com/investing-during-stagflation-11810276

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