Trump's Fed Pick: Global Stagflation Risk Looms, India Faces Economic Crossroads

• US President Donald Trump's choice for Federal Reserve chief could trigger global economic instability, with potential for stagflation.
• Stagflation, a combination of rising prices and slowing growth, is difficult to combat and could be exacerbated by aggressive Fed rate cuts.
• India, despite current stability, is vulnerable due to energy dependence, fragile labor market, rural income pressure, and reliance on capital inflows.
• Aggressive Fed rate cuts could lead to a volatile rupee, higher EMIs, and increased commodity prices in India.
• The world is at a critical economic juncture, and the new Fed chief's policy direction will significantly impact global conditions and India's economy.

Why It Matters: Trump's Fed chief pick could spark global stagflation, posing significant economic challenges for India.