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Dismal data on inflation and retail sales released on Tuesday flashed fresh signs of stagflation in the U.S. economy.
Stagflation is a period when the economy is stagnate but there's a sharp rise in inflation. (It isn't a good situation.)
"The possibility of higher energy prices, tighter credit conditions, and a still-deeper contraction in housing markets all represent significant downside risks to the outlook for growth," Fed chief Ben Bernanke said in remarks to the Senate Banking Committee.
Worryingly, he also said risks of faster inflation had intensified on the back of the rising prices of energy and other commodities.
And that leads to our Fast Money Reader Poll. What should the Fed do in this economic environment?
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