New York (CNN Business) The Federal Reserve has already slashed interest rates by a half-point to counteract a possible coronavirus-induced economic slowdown. But the threat of stagflation -- the term used to describe an economic slowdown coupled with rising prices -- is real. The Fed chose to fight the inflation aspect more aggressively, raising interest rates as high as 20% by 1981. Quadratic Interest Rate Volatility and Inflation Hedge ETF IVOL "Stagflation would be a disaster. One solution could be for the Fed to buy short-term bonds and sell 10-year Treasuries to push longer-term yields higher, Davis said.

Source: CNN March 10, 2020 17:26 UTC