A separate Commerce Department report showed that underlying inflation remained stubbornly elevated in January. Both reports predate the conflict with Iran, which has sent oil prices sharply higher, threatening to push up inflation over the coming months. Ask The Post AIDive deeperThe reports complicate the already difficult task for the Federal Reserve as it tries to cool inflation without tipping the economy into recession. Ask The Post AIDive deeper“The tone and tenor of this morning’s data deluge screams stagflation,” said Joe Brusuelas, chief economist at RSM. Markets climbed in early Friday trading after the release of the weaker-than-expected growth figures, as investors bet that a slowing economy would push the Fed toward cutting interest rates over the coming months.

Source: Washington Post March 13, 2026 17:22 UTC