U.S. economy shows signs of stagflation, warns expert

The Kobeissi Letter, an economic analysis founded by Adam Kobeissi, issued a new warning about the U.S. economy. On Friday, they highlighted concerning data from the Philadelphia Federal Reserve. According to the report, the Philadelphia Fed Manufacturing index fell 5.6 points in March, reaching 12.5. This marks the second month in a row of decline. The outlook for new orders over the next six months dropped by 30.8 points, hitting its lowest level in three years. Kobeissi noted that this decline is among the largest in history, only preceded by declines during the 2008 Financial Crisis and the oil crisis in December 1973. The report also pointed out that the six-month business outlook decreased by around 40 points, the lowest level since January 2024. Simultaneously, prices paid increased by 7.8 points, reaching the highest level since July 2022. Kobeissi concluded that these trends indicate weakening economic activity alongside rising prices. He stated simply, "Stagflation has arrived."