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Get the Facts: Here’s what you need to know about ‘stagflation’
Updated: 4:18 PM EDT May 8, 2025
There’s a lot of talk about the state of the economy. In recent months, you’ve likely been hearing about rising prices and inflation. However, there’s another term that’s gaining attention as Americans wonder what “stagflation” means — and how it’s impacting their wallets. Many Americans have been searching for the term “stagflation.” So what is it? The Hearst Television Washington News Bureau is helping you Get the Facts. Usually, if inflation is high, the economy is growing, and people are spending. However, if growth is low, inflation typically stays low, too. Stagflation breaks all the rules. It combines stagnant economic growth with high inflation, resulting in high unemployment and soaring prices. This combination is measured by the “misery index,” which reflects the economic distress felt by many.The last significant instance of stagflation in the U.S. occurred in the 1970s, marked by skyrocketing gas prices, soaring inflation, job losses and a generally stalled economy.The Federal Reserve worries that the Trump administration’s tariffs could lead to the same outcome. “Certainly, the risks to higher inflation and higher unemployment have increased,” Fed Chair Jerome Powell recently noted.Experts currently assert that while the economy is not in stagflation, the risks are increasing due to factors like tariffs.
There’s a lot of talk about the state of the economy. In recent months, you’ve likely been hearing about rising prices and inflation. However, there’s another term that’s gaining attention as Americans wonder what “stagflation” means — and how it’s impacting their wallets.
Many Americans have been searching for the term “stagflation.” So what is it? The Hearst Television Washington News Bureau is helping you Get the Facts.
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Usually, if inflation is high, the economy is growing, and people are spending. However, if growth is low, inflation typically stays low, too.
Stagflation breaks all the rules. It combines stagnant economic growth with high inflation, resulting in high unemployment and soaring prices.
This combination is measured by the “misery index,” which reflects the economic distress felt by many.
The last significant instance of stagflation in the U.S. occurred in the 1970s, marked by skyrocketing gas prices, soaring inflation, job losses and a generally stalled economy.
The Federal Reserve worries that the Trump administration’s tariffs could lead to the same outcome.
“Certainly, the risks to higher inflation and higher unemployment have increased,” Fed Chair Jerome Powell recently noted.
Experts currently assert that while the economy is not in stagflation, the risks are increasing due to factors like tariffs.
