The Trump Administration’s tariffs and crackdown on legal immigrants risk a return of 1970s-esque "stagflation", when a sudden oil shock prompted stagnant growth and prices spiraling up, except this time the crisis would be self-inflicted. The labour market is sending clearly worrisome signals. Job creation was almost non-existent in May and June, sluggish in July, and the ranks of discouraged workers are growing. 🇺🇸

Prices for hard-to-substitute, imported staples, like coffee and bananas, have already jumped. Forecasters expect price increases to widen in the months ahead, as firms sell down pre-tariff stock and raise prices, now that they have more confidence about what the tariff policies might be.🇺🇸

https://www.bbc.com/news/articles/cwypgx90243o.amp