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Economists Warn Rising Bond Yields Could Signal Stagflation

5/25/2025

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Summary

Story summary

Economist Torsten Sløk warns that rising bond yields may signal stagflation for the US economy, similar to the 1970s.
High inflation and slow growth are key concerns, worsened by tariffs and budget deficits.
Jim Caron from Morgan Stanley believes fears over bond yields are overstated, referencing longstanding deficit issues.
The GOP's budget bill could increase the deficit by $4 trillion, yet Caron maintains Treasurys will remain a safe investment.

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Story summary

Economist Torsten Sløk warns that rising bond yields may signal stagflation for the US economy, similar to the 1970s.
High inflation and slow growth are key concerns, worsened by tariffs and budget deficits.
Jim Caron from Morgan Stanley believes fears over bond yields are overstated, referencing longstanding deficit issues.
The GOP's budget bill could increase the deficit by $4 trillion, yet Caron maintains Treasurys will remain a safe investment.