Chances of US Stagflation Rise to 40%, Experts Warn Traders

AI Summary

Traders indicate nearly 40% chance of stagflation in the US economy by end of 2026, up from 11% in three months, according to Kalshi traders. The consumer price index reported a year-on-year increase of 3.8% in April, the highest since May 2023. Unemployment remains steady at 4.3% as of April, remaining above 4% since May 2024. Forecasts also predict over 65% chance for inflation to exceed 4.5% this year, contrasted with FactSet's consensus of 2.8%. These developments suggest potential challenges ahead for investors and overall economic stability.