Ep. 161 - What is Stagflation and Is It a Threat to Our Economy?

Are we heading towards a period of stagflation, and what could that mean for the U.S. economy? In this episode, Quinton simplifies stagflation, exploring its definition, causes, and potential consequences. He examines warning signs in the current economy, such as the savings rate, credit card debt, and recent earnings reports from companies like Starbucks and Keurig. He also discusses the Federal Reserve's interest rate policies and their role in combating inflation, as well as the potential for a refinancing wave among homeowners. Throughout the episode, Quinton presents both sides of the stagflation debate, offering insights and analysis to help listeners understand this complex economic phenomenon and its possible impact on their daily lives and our economy as a whole.

[00:00 - 01:14] - Introduction

[01:15 - 02:29] - What if rates don't drop?

[02:30 - 04:04] - Defining stagflation

[04:05 - 05:29] - How the Fed's easing policy could feed inflation

[05:30 - 06:59] - Low savings rate and high credit card debt in America

[07:00 - 08:29] - Starbucks' declining sales and Keurig's surge

[08:30 - 09:59] - Rising credit card delinquency rates and rejection rates

[10:00 - 11:29] - The lag effect of interest rate hikes on the economy

[11:30 - 12:44] - Inflation target and the stagflation camp's argument

[12:45 - 14:59] - Signs of prices reducing in stores and fast food deals

[15:00 - 16:44] - Closing Segment

Resource:
https://bit.ly/WY1MResource

Key Quote:

“The savings rate in America is very low right now” - Quinton Harris

_______________________

Search for “What’s Your 1 More” on YouTube to enjoy highlights and full video episodes.

Watch the podcast on Spotify for full video episodes, Q&As, and community polls! 

Do you want to master your finances and financial leadership? Connect with us on Facebook, Twitter, and Instagram.

Bank of England is a nationwide lender that takes the time to understand your needs and structure the right mortgage for you and your family. Find your local branch at https://www.boemortgage.com/. 

Please subscribe, share, and leave a review to let us know you want to keep the content coming!