Stagflation Risks on the Rise Without Economic Slowdown

J.P. Morgan's managing director James Sullivan sounded an alarm about the risk of stagflation without a significant economic slowdown, as high oil prices and persistent core inflation weigh on the global outlook.

Oil prices above $100 a barrel for an extended period could mark the beginning of a stagflation period, according to Sullivan. He described the combination of reasonable economic growth and higher inflation as a development reviving debate from the 1970s.

'Reasonable levels of economic growth with higher levels of inflation start to trigger this stagflation conversation,' Sullivan said.