U.S. stocks are lagging behind global markets by the widest margin since 1993. Investors fear that President Trump’s aggressive tariff policies and a weakening dollar could lead to stagflation, compounding the market’s challenges.

As economists raise alarms over the increasing risk of stagflation, Americans may face a challenging economic period marked by rising prices and slowing growth. Experts attribute this threat to current tariff policies, urging consumers to prepare financially for potential hardships.

As President Trump’s tariffs take effect, the U.S. economy faces the dual threat of slowing growth and rising inflation. This stagflationary pressure presents a significant challenge for the Federal Reserve, which must navigate this economic conundrum.