OECD Sounds Alarm: Brace for Soaring Inflation and Economic Slowdown

The OECD just dropped a bombshell warning that'll make central bankers sweat.

Storm Clouds Gathering

Forget soft landings—the organization's latest forecast paints a grim picture of inflationary pressures mounting while growth engines sputter. We're talking stagflation vibes that haven't been seen since the 70s.

Policy Nightmare

Central banks now face their worst dilemma: fight inflation with rate hikes that choke growth, or stimulate economies and watch prices spiral. Either path risks triggering the very crisis they're trying to avoid.

Digital Assets Shine

Meanwhile, cryptocurrency markets continue operating in their own reality—because apparently trillion-dollar algorithms care more about meme coins than macroeconomic fundamentals. Some hedge, apparently.

The OECD's warning serves as a stark reminder that traditional finance's playbook might need burning. Adapt or get left behind.

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The OECD estimates that the average U.S. tariff rate was 19.5% at the end of August, registering the highest level since 1933. It also expects inflation to average 3% in 2026, up from its estimate of 2.7% for 2025.

“The impacts of higher tariff rates are yet to be fully felt in the U.S. economy,” said the organization.

OECD Warns of Cooling Growth and Shaky Labor Market

After growing by 2.4% in 2024, the OECD expects GDP growth to drop sharply to 1.8% in 2025 and then 1.5% in 2026. That comes with a weakening labor market, which the OECD attributes to lower net immigration and a smaller government workforce.

The Fed has acknowledged a slowing labor market, with the OECD predicting one more rate cut in 2025 and two more in early 2026.