Taryn Phaneuf

So at least the price situation isn't being exacerbated by high or rising transportation costs.

So at least the price situation isn't being exacerbated by high or rising transportation costs.

It's tricky because like I said earlier, inflation and stagnation don't typically exist simultaneously. To fight inflation, the Fed raises interest rates, but to fight stagnation, it lowers them. Then during the pandemic and the Great Recession, we also saw more government spending to help keep the economy going.

It's tricky because like I said earlier, inflation and stagnation don't typically exist simultaneously. To fight inflation, the Fed raises interest rates, but to fight stagnation, it lowers them. Then during the pandemic and the Great Recession, we also saw more government spending to help keep the economy going.

It's tricky because like I said earlier, inflation and stagnation don't typically exist simultaneously. To fight inflation, the Fed raises interest rates, but to fight stagnation, it lowers them. Then during the pandemic and the Great Recession, we also saw more government spending to help keep the economy going.

But when both inflation and stagnation hit at once, like in the 1970s, those tools can work against each other. For now, the Fed is being cautious, but may have to decide which side of the problem to focus on first.

But when both inflation and stagnation hit at once, like in the 1970s, those tools can work against each other. For now, the Fed is being cautious, but may have to decide which side of the problem to focus on first.

But when both inflation and stagnation hit at once, like in the 1970s, those tools can work against each other. For now, the Fed is being cautious, but may have to decide which side of the problem to focus on first.

That's right. Inflation has cooled. April's Consumer Price Index, which measures inflation, shows 2.3% annually or 2.8% excluding food and energy, which are more volatile. That's heading toward the Fed's target range of 2%, but there's still a little way to go. Growth was pretty strong over the last few years, but in the first quarter of 2025, gross domestic product data was negative.

That's right. Inflation has cooled. April's Consumer Price Index, which measures inflation, shows 2.3% annually or 2.8% excluding food and energy, which are more volatile. That's heading toward the Fed's target range of 2%, but there's still a little way to go. Growth was pretty strong over the last few years, but in the first quarter of 2025, gross domestic product data was negative.

That's right. Inflation has cooled. April's Consumer Price Index, which measures inflation, shows 2.3% annually or 2.8% excluding food and energy, which are more volatile. That's heading toward the Fed's target range of 2%, but there's still a little way to go. Growth was pretty strong over the last few years, but in the first quarter of 2025, gross domestic product data was negative.

That was mainly due to an uptick in imports as businesses stocked up on foreign goods ahead of tariffs. Second quarter data should hopefully provide a clearer picture of where growth is trending. Unemployment has stayed relatively low and stable, but there are some signs of softening in the labor market, including a decline in job openings.

That was mainly due to an uptick in imports as businesses stocked up on foreign goods ahead of tariffs. Second quarter data should hopefully provide a clearer picture of where growth is trending. Unemployment has stayed relatively low and stable, but there are some signs of softening in the labor market, including a decline in job openings.

That was mainly due to an uptick in imports as businesses stocked up on foreign goods ahead of tariffs. Second quarter data should hopefully provide a clearer picture of where growth is trending. Unemployment has stayed relatively low and stable, but there are some signs of softening in the labor market, including a decline in job openings.

So there are some warning bells going off right now for economists. Fed Chair Jerome Powell has even acknowledged that there is a heightened risk of stagflation ahead.

So there are some warning bells going off right now for economists. Fed Chair Jerome Powell has even acknowledged that there is a heightened risk of stagflation ahead.

So there are some warning bells going off right now for economists. Fed Chair Jerome Powell has even acknowledged that there is a heightened risk of stagflation ahead.

Yes, definitely. Start by building or rebuilding your emergency fund. High-yield savings accounts are still offering decent interest rates at the moment, so that could be a good place for protecting your savings from inflation. Second, the high interest rate environment makes it especially expensive to borrow money, so it's a good idea to reduce your debt if you're able.

Yes, definitely. Start by building or rebuilding your emergency fund. High-yield savings accounts are still offering decent interest rates at the moment, so that could be a good place for protecting your savings from inflation. Second, the high interest rate environment makes it especially expensive to borrow money, so it's a good idea to reduce your debt if you're able.

Yes, definitely. Start by building or rebuilding your emergency fund. High-yield savings accounts are still offering decent interest rates at the moment, so that could be a good place for protecting your savings from inflation. Second, the high interest rate environment makes it especially expensive to borrow money, so it's a good idea to reduce your debt if you're able.