Institution: With the Fed, the U.S. economy will not return to the "stagflation" period of the 1970s.

On July 25, Jin10 reported that Matthew Jeffrey Vegari, head of research at Clearwater Analytics, stated that expectations of price increases due to tariffs are reigniting fears of a return to the stagflation era of the 1970s; however, such predictions are incorrect. Stagflation typically features high inflation, low economic growth or stagnation, and high unemployment rates; while U.S. economic growth may be hindered in the next two years, the characteristic of high unemployment is notably absent in the general consensus. Fed policymakers have commendably avoided pushing the overheated economy into recession while slowing it down. The moment we should truly worry about stagflation is when the Fed becomes less independent or no longer extremely focused on price stability. Perhaps a period of rising inflation and unemployment may occur in the future, but during this Fed’s term, the situation will not be as dire as in the 1970s, and high inflation will not persist.