Tuesday July 26 2022
Gerard Baker in his WSJ column today suggests this Thursday will be stagflation day. Wed afternoon we get the FED tightening and Thursday morning we get second quarter GDP.
What Is Stagflation?
Stagflation is characterized by slow economic growth and relatively high unemployment—or economic stagnation—which is at the same time accompanied by rising prices (i.e., inflation). Stagflation can be alternatively defined as a period of inflation combined with a decline in the gross domestic product (GDP).
This is where we are, increased prices with slowing growth. WMT just dropped 11 dollars or 8% on projected slower growth. the White House is spinning that a recession is not two quarters of slower GDP. Instead it cites low unemployment.
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