Federal Reserve Chair Jerome Powell said on Wednesday that the current U.S. economic situation, even with the Iran war-induced spike in energy prices was far removed from the "stagflation" of the 1970s, with current inflation only one percentage point above target and low unemployment.
I would reserve the term stagflation for, you know, a much more serious set of circumstances. That is not the situation we're in," Powell told a news conference after the Fed held policy rates steady.
"What we have is some tension between the goals and we're trying to manage our way through it," Powell added. "It's a very difficult situation, but it's nothing like what they faced in the 1970s and I reserve stagflation for that -- the word -- for that period. Maybe that's just me."
