Ben Bernanke predicts stagflation in the U.S.
Posted: Mon May 16, 2022 9:22 pm
https://dnyuz.com/2022/05/16/ben-bernan ... the-1970s/He is hopeful that Jay Powell, the current Federal Reserve chairman, can help tame inflation without having to put in place the extreme measures that the former Fed chairman Paul Volcker did in the 1970s or send the economy into recession.
But he also suggests it is possible the nation could be in for a period of “stagflation,” a word Mr. Bernanke says was invented in the 1970s.
“Even under the benign scenario, we should have a slowing economy,” he said. “And inflation’s still too high but coming down. So there should be a period in the next year or two where growth is low, unemployment is at least up a little bit and inflation is still high,” he predicted. “So you could call that stagflation.”
