There’s been a steady drumbeat of concerns about stagflation as recent data
showed economic growth slowing sharply and inflation picking up.
Now, Wall Street can’t ignore that unpleasant subject as its presence is
starting to be felt on financial markets, especially in bonds.
“I think what we’re seeing here is I’m starting to get whiffs of stagflation,
dare I say,” Steve Sosnick, chief strategist at Interactive Brokers, told
Bloomberg TV on Friday. “I know
that’s a dirty word in a lot of circles.”
He described the first-quarter GDP
report on Thursday as terrible, noting growth decelerated much more than
expected to 1.6% from 3.4% in the fourth quarter.
Meanwhile, the report also showed that inflation, as measu
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