Inflationary Pressures Mount, Raising Stagflation Fears But Key Differences Exist versus 1970s

Inflation remains high across major economies, fueling concerns that 1970s-style stagflation could repeat.

Geopolitical risks like Middle East conflict and supply shocks from COVID-19 and Ukraine war add to inflationary pressures.

Anchoring inflation expectations is key, but another shock could unmoor them like in 1970s.

Unlike 1970s, inflation expectations remain stable and supply chains are healing, but complacency is risky.

Risk-off sentiment prevailed in markets amid growth concerns, with stocks down, Treasuries up, and gold rallying.