Part 5/12:
Long-term inflation outlooks over the next five years have also climbed to 4.4%, the highest since June 1991. This shift fuels consumer anxiety, as sentiment about future economic stability hits the second-lowest level ever recorded. Americans are bracing for a possible scenario known as stackflation, characterized by high inflation, sluggish growth, and widespread consumer pessimism—a challenging environment for policymakers aiming to stabilize prices without tipping the economy into recession.