Institution: After the economy almost had a soft landing, the Federal Reserve is now facing new threats of stagflation

ChainCatcher reports that after the US economy nearly experienced a soft landing, the Federal Reserve now faces a series of more worrying situations. GSFM investment strategy consultant Stephen Miller stated that inflation is falling; interest rates are declining; bond yields will drop, all of which have led to stock market prosperity.

He added that the Fed's forecast has now shifted towards a slight stagflation scenario, but there are still many places where things could go wrong. Transitory inflation may persist and there is reason to believe that the risk of persistence is currently high. As governments around the world adopt protectionist measures, the retreat from globalization in commodity markets exacerbates price pressures and structural trends in U.S. inflation are moving in an unfavorable direction. Immigration restrictions and baby boomers exiting the labor market will also intensify inflation. He added that currently, there is about a 50% chance of recession in the US economy.