Stagflation: Q1 GDP Much Weaker Than Expected On Inventory Plunge As Inflation Comes In Red Hot

Chris Zaccarelli, chief investment officer at Independent Advisor Alliance, had a far more downbeat view. He said that “this morning’s data was the worst of both worlds, with growth down and inflation up… Given that Core PCE is nowhere near the Fed’s 2% target (e.g. rising to 4.9% from 4.4%), the Fed clearly needs to keep raising rates (because of inflation) and they are going to be raising rates right into a slowdown. We are beginning to worry that stagflation is a real possibility.”