May 7, 2025

Powell’s Tariff Warning Triggers Stagflation Jitters

Powell’s stark warning on tariffs — higher prices and slower growth — has traders flashing back to the stagflation nightmares of the late 1970s under Paul Volcker.

Powell Sounds the Stagflation Alarm

Fed Chair Jerome Powell said tariffs could push inflation higher while slowing growth. The Fed is on alert for signs of stagflation – the ugly combo of rising prices and falling output.

Wall Street Reels as Powell Flags Stagflation Risks

The Dow dropped to 41,060.67, down 0.57%, as investors weighed the stagflation risk. Crypto also saw a dip as traders braced for prolonged inflation.

Tariffs Stoke Inflation Worries, Fed on Edge

A Boston Fed study estimates new tariffs could add 0.5 to 2.2 percentage points to core inflation. That’s fuel on the fire for inflation hawks.

fedchair

Stagflation Fears Echo the 1970s

In the 1970s, inflation and stagnant growth led to back-to-back recessions. Powell’s warning evokes memories of that era, though he insists conditions aren’t as severe yet.

Bitcoin: Hedge or Hype in a Stagflation Scenario??

Some crypto investors view Bitcoin as a hedge against stagflation. But with market volatility rising, safe-haven assets like gold may draw more attention.

What This Means for YOU

  • Higher rates could stick around – Borrowing may stay costly for longer.

  • Stocks may struggle – Inflation and slow growth hurt corporate profits.

  • Crypto volatility – Inflation fears could keep crypto prices choppy.

  • Trade headlines matter – Tariff news could spark quick market swings.

Powell Sounds the Stagflation Alarm

Fed Chair Jerome Powell said tariffs could push inflation higher while slowing growth. The Fed is on alert for signs of stagflation – the ugly combo of rising prices and falling output.

Wall Street Reels as Powell Flags Stagflation Risks

The Dow dropped to 41,060.67, down 0.57%, as investors weighed the stagflation risk. Crypto also saw a dip as traders braced for prolonged inflation.

Tariffs Stoke Inflation Worries, Fed on Edge

A Boston Fed study estimates new tariffs could add 0.5 to 2.2 percentage points to core inflation. That’s fuel on the fire for inflation hawks.

fedchair

Stagflation Fears Echo the 1970s

In the 1970s, inflation and stagnant growth led to back-to-back recessions. Powell’s warning evokes memories of that era, though he insists conditions aren’t as severe yet.

Bitcoin: Hedge or Hype in a Stagflation Scenario??

Some crypto investors view Bitcoin as a hedge against stagflation. But with market volatility rising, safe-haven assets like gold may draw more attention.

What This Means for YOU

  • Higher rates could stick around – Borrowing may stay costly for longer.

  • Stocks may struggle – Inflation and slow growth hurt corporate profits.

  • Crypto volatility – Inflation fears could keep crypto prices choppy.

  • Trade headlines matter – Tariff news could spark quick market swings.