Stagflation Alarm: Economists Worry About War's Impact

0:00It's March 30, Durham News Today starts now, AI-powered and ready. Economists are sounding alarms about stack-flation, that nasty combo of high inflation, slow growth, and stubborn unemployment. It's getting attention because of the war in Iran, where gas prices have jumped more than one dollar in North Carolina, matching spikes across the country. This setup creates a real bind for the Federal Reserve, if they ease up to boost jobs, inflation could explode, tighten to fight prices, and unemployment climbs even higher. Local experts here in Central North Carolina aren't panicking, but they see the worries have some legs. Big names like Nureel Roubini, who nailed the 2008 crash prediction, warned that escalating conflict could drag us back into this mess. The last big stack-flation hit in the 1970s, fueled by oil shocks, loose money policies, and price controls gone wrong. Just like Forbes' Dixon at Wake Tech, point that out as a caution against overreacting.

1:01That said, chief economist Gerald Cohen notes were way more energy independent today. As a net oil exporter, the U.S. isn't as vulnerable to these shocks, so while gas hurts, the full stack-flation picture feels less likely right now.