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Fed Warns: Stagflation Looms Amid Trump's Economic Policies

6/19/2025

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Summary

Story summary

The Federal Reserve warns of a looming stagflation in 2025, projecting a troubling 3% inflation, a 1.4% GDP drop, and rising unemployment at 4.5%. Fed Chair Jerome Powell attributes this economic downturn to President Trump's tariffs. Meanwhile, the Trump administration's potential aid to Israel raises concerns about economic stability, alongside the “One Big Beautiful Bill Act,” which could swell the deficit by a staggering $2.8 trillion.

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Story summary

The Federal Reserve warns of a looming stagflation in 2025, projecting a troubling 3% inflation, a 1.4% GDP drop, and rising unemployment at 4.5%. Fed Chair Jerome Powell attributes this economic downturn to President Trump's tariffs. Meanwhile, the Trump administration's potential aid to Israel raises concerns about economic stability, alongside the “One Big Beautiful Bill Act,” which could swell the deficit by a staggering $2.8 trillion.