'Stagflation has arrived': Frequent Fox economics analysis guest sounds dire warning

The Kobeissi Letter, the economics analysis letter founded by frequent Fox Business guest Adam Kobeissi, put out a new warning on the American economy on Friday.

Writing on X, the Kobeissi Letter pointed to data released this week by the Philadelphia Federal Reserve as a particularly troubling signpost about where the economy is headed.

"The Philadelphia Fed Manufacturing index dropped 5.6 points in March, to 12.5, its 2nd consecutive monthly decline," Kobeissi wrote. "6-month outlook for new orders fell by 30.8 points, to 2.3, the lowest in 3 years. This marks the third-largest drop in history, only behind the 2008 Financial Crisis and December 1973."

December 1973 was in the wake of the oil embargo that sent energy prices in the United States skyrocketing.

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And that's not all the bad knows that Kobeissi found in the latest Fed data.

"Furthermore, 6-month business outlook dropped ~40 points to its lowest since January 2024," the letter noted. "All while prices paid rose 7.8 points, to 48.3, the highest since July 2022."

The bottom line, according to Kobeissi, is that "this is further evidence of weakening economic activity with rising prices. Stagflation has arrived."