US stock markets are experiencing growing concerns about stagflation, despite President Trump’s pro-growth agenda. The current inflation rate is coupled with low economic growth, sparking fears among fund managers.
A recent survey shows that expectations for stagflation have risen among US investors. This comes as the ongoing tariffs imposed by the Trump administration are adding to the economic uncertainty.
However, some market analysts remain optimistic about the temporary impact of the tariffs on economic growth. They believe that the market will recover once the tariffs are lifted or modified.
Analysts caution against complacency towards Trump’s policies, warning that investors should not take their current pro-growth stance for granted. The concerns surrounding stagflation highlight the need for cautious investment strategies and a careful assessment of the potential risks associated with emerging trends in the US economy.
Source: https://www.reuters.com/markets/us/stagflation-fears-haunt-us-markets-despite-trumps-pro-growth-agenda-2025-02-20