EconomyIs the US Economy Heading for Stagflation in 2026?

US inflation is running above the Federal Reserve’s 2% target. Twelve percent of global crude oil supply is off the market, nearly twice the scale of the shocks seen in the 1970s. Unemployment, however, remains at 4.3% while the economy continues to grow. The question is whether higher energy costs could weaken demand and complete the stagflation picture.