Wall Street Fears Return of 1970s Stagflation if Fed Overshoots on Inflation Fight

Some Wall Street strategists worry the US could face 1970s-style stagflation with high inflation, low growth.
Stagflation fears emerged in 2022 as the Fed hiked rates to combat high inflation.
But inflation has stalled below 2% target, raising concerns of second wave if policies stay status quo.
Investors bet on rate cuts this year, but dialed back expectations given sticky inflation and Fed's cautious messaging.
If Fed keeps rates high to tame inflation, it could dampen growth and heighten unemployment risk.