Strategist: The United States may fall into "mini stagflation" in the second quarter of this year, making the Federal Reserve reluctant to further cut interest rates this year

Odaily reports that BCA Research chief strategist Dhaval Joshi told Business Insider that he believes the US could enter a "mini-stagflation" as early as the second quarter of this year. Joshi said that inflation appears to be "stuck" above the Federal Reserve's 2% target. Higher prices will make the Federal Reserve reluctant to cut rates further this year, which could exacerbate the economic slowdown. He added, "I think this could happen quite soon." Stifel managing director and chief equity strategist Barry Bannister told Business Insider this month that he expects the US to enter a moderate stagflation scenario in the second half of 2025, and believes this could lead to a 10% drop in US stocks. (Jinshi)