Just to refresh your memory from the foggy days of the 70's . Stagflation is the combination of high inflation coupled with slow growth and rising unemployment. To combat inflation the Fed raises interests rates .But when they do that the intent is to slow down a hot economy. But if the economy is sluggish then raising interest rates becomes problematic.
We are not quite there yet .But we are well on the way. Economic growth this last quarter was slightly over 1 % But inflation is still at unacceptable levels according to the 2% target the Fed has set. The personal price index grew at a 4.2 percent Excluding food and energy, it rose 4.9 percent, the quickest in a year . The only thing that prevents a definite stagflation is unemployment numbers are still good . But as businesses tighten the belt ;that is likely to change.
The Fed has indicated it will raise rates in May. But then who knows ? They may pause; especially as the election cycle is entered into. Households are rapidly using up the pandemic gimmees . So we can expect consumer belt tightening . Higher interest rates have already increased mortgage rates and is cooling down the housing market.