Concerns over stagflation in the U.S. economy have intensified amid stubborn inflation and President Donald Trump's trade policies. Analysts warn that a combination of sluggish growth and persistent inflation could mirror the economic challenges faced in the 1970s. Recent surveys indicate that many American consumers are apprehensive about the impact of new tariffs on imported goods, with fears that these could exacerbate inflationary pressures. The stock market reacted negatively to these economic concerns, with the S&P 500 erasing nearly all gains since Trump's inauguration, as investors grapple with rising inflation expectations linked to his tariffs. Federal Reserve officials have also highlighted increasing risks of inflation amidst uncertainty surrounding Trump's economic policies. Bond traders are skeptical of the administration's assurances that tariffs will not lead to inflation, as breakeven yields for two- and five-year bonds have reached a two-year high, reflecting heightened inflation expectations.