Why it matters: Any concerns about “stagflation,” when high inflation, slow economic growth, and rising unemployment happen simultaneously, are misplaced.
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Be smart: Economic growth remains robust, growing around 3% in 2023. And the Atlanta Fed projects the economy will grow at a strong 3.6% in the second quarter.
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• Changing demographics means the worker shortage isn’t going away. Businesses will continue filling job openings which is not a recipe for higher unemployment. No rising unemployment, no stagflation.
• At the same time, businesses are investing in new technologies like automation and AI. This will make workers more productive, allowing companies to pay higher wages, which would not happen during stagflation.

Bottom line: Inflation may persist longer than we hoped, but the economy and the jobs market are holding up well and businesses continue to invest.