The US-Iran war is ramping up fears of a worst-case scenario for the economy

Adrian Bogdan

Stagflation has re-entered the chat. After spooking investors last year amid tariff turmoil, the dire combo of high inflation and weak economic growth is again rearing its head, with the Iran war as the latest driver. Stagflation is often considered the  worst-case scenario for the economy, as it's a more difficult problem for policymakers to solve than a typical economic slowdown. That's because the Fed would be restricted in its ability to cut rates as it would do in a normal recession

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The US-Iran war is ramping up fears of a worst-case scenario for the economy https://www.businessinsider.com - 03.03.2026 18:25

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The US-Iran war is ramping up fears of a worst-case scenario for the economy https://www.businessinsider.com - 03.03.2026 18:25