Varney: Politicians will feel stagflation at the ballot box
US has inflation problem everyone can 'see, feel,' Varney says
FOX Business' Stuart Varney says Americans are already feeling stagflation in their wallets.
FOX Business' Stuart Varney warned that stagflation is headed the United States' way again in his "My Take" on Tuesday, noting while Americans are already feeling it in their wallets, politicians are going to feel it at the ballot box.
EXPERTS WARN NEW ECONOMIC CRISIS 1970s-STYLE TO HAPPEN AGAIN
STUART VARNEY: Stagflation is not a happy subject.
There are times when the economy gets into an intractable mess – slow, or ‘no’ growth, with rising prices: that is stagflation.
We haven't felt it in a generation, but it sure looks like it’s headed our way again. You're going to hear a lot about this!
For the past year, inflation has gradually picked up steam. Now, it’s running hot at a 10% clip. And, I think it gets worse. Food price inflation will soon accelerate. Couple that with gas prices and electricity bills and everything else, and you've got an inflation problem that everyone can see and feel.
FOX Business' Stuart Varney on Tuesday, March 22, 2022.
It is the job of the Federal Reserve to fix it. They do this by raising interest rates. And that's what they're doing now. The economy will slow. That’s the ‘stag’ part of ‘stagflation’ – stagnant economy, rising prices.
Think of the implications of this: the standard of living, especially for low-income people, goes down. Just about everyone loses ground.
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We saw stagflation in the late 70s and very early 80s. Ten percent inflation; slowing economy; rate hikes then recession. An angry electorate fired President Carter.
This time around, we are already feeling stagflation in our wallets. I think the politicians will feel it at the ballot box.