Stagflation Risk: Stephen Roach Latest Economist to Sound Alarm on ’70s-Style Inflation

Contact Your Elected Officials
The Epoch Times Logo

‘One supply chain glitch away from stagflation,’ he says

Stephen Roach is the latest high-profile economist to sound the alarm on the risk of the United States facing 1970s-style stagflation—where economic growth falls, but inflation stays stubbornly high.

The former Morgan Stanley Asia chairman told CNBC on Sept. 29 that the energy price spike is inflicting major damage to struggling supply chains and that he believes that the United States is “one supply chain glitch” away from a ’70s-era bout of stagflation.

His remarks come as gasoline stations are running dry in the UK, power costs are surging in the EU ahead of winter, and prices for oil, natural gas, and coal are rising.

In the interview, Roach spoke of supply chain bottlenecks shifting from one part of the supply chain to another rather than easing, a situation he called “strikingly reminiscent of what we saw in the early 1970s” and one that “suggests that inflation will stay at these elevated levels for longer than we thought.”

“We were sort of one supply chain glitch away from stagflation,” Roach said. “That seems to be playing out, unfortunately.”

Roach took aim at the Fed’s easy money policies, arguing that they were excessive, particularly in the face of persistent inflationary pressures.

While Fed officials have maintained that the current bout of inflation is temporary and will abate once supply chain dislocations abate, they’ve increasingly started to acknowledge that inflation has been stickier than previously thought.

“This is not a situation that we have faced for a very long time, and it is one in which there is a tension between our two objectives. … Inflation is high and well above target, and yet there appears to be slack in the labor market,” Federal Reserve Chair Jerome Powell said at a European Central Bank forum, with his remarks appearing to point to a stagflationary dynamic.

Surging prices have been a headline theme amid the economic recovery, rising faster than wages and eroding the purchasing power of Americans.

By Tom Ozimek

Read Full Article on TheEpochTimes.com

The Thinking Conservative
The Thinking Conservativehttps://www.thethinkingconservative.com/
The goal of THE THINKING CONSERVATIVE is to help us educate ourselves on conservative topics of importance to our freedom and our pursuit of happiness. We do this by sharing conservative opinions on all kinds of subjects, from all types of people, and all kinds of media, in a way that will challenge our perceptions and help us to make educated choices.

Remember Epstein’s “Little Black Books”?

Image of Bill Clinton getting a massage from Jeffrey...

On the Major League’s periphery: A major trip through the minors

For Nick Dunn, the trek through the minors is a trifecta of physical, mental, and organizational hurdles filled with politics, roster volatility, and injuries.

Private Citizens are Now Looking into Epstein Client List

Most Americans have never felt so betrayed and confused by a president and his admin as they are by the Trump admin over the Epstein client list issue.

Peace In Ukraine Won’t End The West’s Hybrid War On Russia

The West’s Hybrid War on Russia to follow peace in Ukraine is inevitable due to neoconservatives and liberal-globalists in its decision-making ecosystem.

Epstein Case Closed?

The DOJ and FBI announced on Sunday evening of the July 4th holiday weekend that Jeffry Epstein had no client list and didn’t kill himself in prison.

Federal Judge Blocks Trump’s Birthright Citizenship Order After Supreme Court Ruling

Judge barred Trump admin from enforcing EO limiting birthright citizenship, after Supreme Court restricted judges from issuing nationwide injunctions.

California Might Stop Making Necessary Debt Payments for 2 Years

California State Legislature met the budget submission deadline and it was signed by the governor, but they still need to cut $12 billion in spending.

MP Materials Secures Rare Earths Deal With DOD, Shares Surge 50 Percent

MP Materials Corp. announced a public-private partnership with the DOD to build out rare earth magnet supply chain and reduce dependency on China.

Ex-CIA Director Brennan Says DOJ Hasn’t Contacted Him About an Investigation

Former CIA Dir Brennan said he hasn't been contacted by DOJ, FBI, or CIA following reports he and former FBI Dir. Comey are under investigation.

RFK Jr. Bans Illegal Immigrants From Government-Funded Programs

HHS Sec. Robert F. Kennedy Jr. is rescinding a 1998 interpretation of a law that allowed illegal immigrants to access certain government-funded programs.

Rubio Set to Visit Malaysia for ASEAN Meetings Amid Tariff Tensions

A delegation including U.S. Sec. of State Marco Rubio will travel to Kuala Lumpur, Malaysia, for series of high-profile meetings between July 11 and 12.

US Will Collect More Than $300 Billion in Tariff Revenues This Year, Treasury Secretary Says

U.S. is on track to potentially raise “well over $300 billion” in tariff income by end of the year, Treasury Sec. Scott Bessent said during WH Cabinet meeting.

Senate Panel Advances Trump’s CDC Director Nominee

A Senate committee on July 9 voted to advance the nomination of Susan Monarez to lead the Centers for Disease Control and Prevention (CDC).
spot_img

Related Articles