Academics from some of the top institutions in the US warn the economy could be heading for stagflation on the current path of monetary policy.

Stagflation – a combination of stagnant or contracting economic activity and rising inflation – is already threatening. Headline inflation was 6.8% in June, and GDP growth was negative in both the first quarters of 2022.

The labour market remains one bright spot, as unemployment was steady at 3.6% in June, with 372,000 more jobs added. A key question