- Stagflation is here, the Fed finally admits
- Expert Nigel Green says hedge now, Fidelity’s Monk points to safe havens
- Gold, bonds and cash – time to rethink portfolios
For months, whispers of stagflation circled Wall Street like ghosts in the corridors – visible enough to spook, but never quite real enough to confront.
But last week, Fed boss Jerome Powell said the word out loud.
“Stagflation” isn’t just a tail risk anymore – it’s here, it’s real, and the Fed is not pretending otherwise anymore.
“The Fed has just confirmed what we’ve been warning clients about for more than three months,” said Nigel Green, CEO of financial advisory giant deVere Group.
Green said the warning lights have been flashing: slower economic growth, higher inflation and unemployment ticking upwards.
Those three ingredients, when tossed together in the economic pot, make a bitter stew called stagflation.
And this time, Powell pointed the finger squarely at trade policies, specifically, Donald Trump’s barrage of tariffs.
“When you weigh rising prices against declining productivity, and then throw in trade wars, the result is a stagnating economy with no good choices.
“That’s the definition of stagflation, and now the Fed is saying it, too,” Green added.
The Fed’s honesty is late, but welcome, Green quipped.
“Investors can’t wait around for policy clarity from Washington. The time to hedge, reposition and diversify was yesterday, but the next best time is now.”
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It's Biden's fault.