FHN Financial Economic Weekly: Friday, May 8, 2026

by Chris Low, Sophia Kearney-Lederman, Will Compernolle, and Mark Streiber

This week, Chicago Fed President Austan Goolsbee warned stagflation is a risk for the US economy. In the Economic Weekly, we explain why energy price spikes have traditionally triggered the concurrent inflation and recession in the US necessary to create stagflation, how the economy has changed to break this stagflation pattern, and why we think it’s a good thing the Fed is wary of economic weakness as it will prevent an overreaction to energy inflation.

Click here to read this issue of the Economic Weekly.