The term “stagflation” has started to be discussed as economic uncertainty has risen early in President Donald Trump‘s second term. Here is what it means and why it matters.

Trump entered office promising a rework of the government and economic policy, with tariffs being a key change. But markets have started to react fearfully to such an aggressive trade policy as the Federal Reserve still works to drive down persistent inflation. Some investors and market observers have grown worried that a recession may be on the horizon.

Recommended Stories

Fed holds interest rates steady amid market uncertainty

Economy adds 147,000 jobs in June, more than expected

GDP growth rate revised down slightly to still-strong 3.2% for fourth quarter of 2023