Neil Dutta, Columnist

No, the Fed Isn't Behind the Curve on Stagflation

The low risk of inflation should curb the recent increase in Treasury yields and provide relief to equity investors.

February 22, 2018 at 4:41 PM UTC

Neil Dutta is the head of economics at Renaissance Macro Research, responsible for analyzing global trends and cross-market investment themes.

We're not going back to the 1970s.
Photographer: Frazer Harrison/Getty Images

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Inflation has been so low for so long that any uptick prompts proclamations that the Federal Reserve has fallen behind the curve or worse. Last week, soft January reports on retail sales and industrial production and a strong reading on core CPI inflation led to alarm about stagflation, a dreaded combination of weak economic growth and sharp increases in consumer prices.

Investors should ignore these calls.