The Puzzle Pieces for Stagflation Are Beginning to Take Shape, and That's Terrible News for Fed Chair Kevin Warsh and Wall Street
Kevin Warsh and a historically pricey stock market may soon be on the hot seat.
Overview
Despite short-lived periods of outsize volatility, it's shaping up as another stellar year for the stock market. Since early June, the Dow Jones Industrial Average (DJINDICES: ^DJI), S&P 500 (SNPINDEX: ^GSPC), and Nasdaq Composite (NASDAQINDEX: ^IXIC) have blasted to record highs.
But the good times may be nearing an end, thanks to the Federal Reserve's nightmare scenario, stagflation. While this economic scenario, characterized by high inflation, high unemployment, and stagnant or weakening economic growth, isn't currently in play, the puzzle pieces that could dramatically complicate life for Fed Chair Kevin Warsh and the Federal Open Market Committee (FOMC) are taking shape.
Fed Chair Kevin Warsh delivering remarks. Image source: Official Federal Reserve Photo.
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Originally published at www.fool.com.