J.P. Morgan Warns Stagflation Risks Persist Even Without a Sharp Economic Slowdown
Investors should watch for signs of stagflation even in the absence of a significant economic slowdown, the bank says.
Investors should keep watching for signs of stagflation even if the broader economy avoids a significant slowdown, according to J.P. Morgan, as reported by CNBC.
The warning suggests that the absence of a sharp downturn should not be read as a sign that inflationary and growth risks have faded entirely.
A narrower kind of risk
J.P. Morgan's analysis frames stagflation risk as more nuanced than a simple recession call, pointing to signals that can emerge even in an economy that continues to grow at a modest pace.
The report did not specify which economic indicators J.P. Morgan is tracking most closely, though such assessments typically weigh trends in inflation, wage growth and employment together.
The bank's caution comes as investors continue to debate the path of interest rates and the broader economic outlook.
Sources
- An absence of significant economic slowdown doesn't mean no signs of stagflation risks. Here's why — CNBC — Top News
EGazette summarizes reporting from multiple sources; follow the links for the originals.
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