Heading for Stagflation?

"What the Fed doesn't understand is that full employment can exist in perfect harmony with stable prices. That's because having more people producing goods and services can never by itself lead to an environment of rising aggregate prices. And, most important, an increasing rate of inflation increases the rate of unemployment.

This condition plagued the United States during the majority of the 1970's and early 1980's and was "affectionately" referred to as stagflation: rising inflation that is coupled with a high unemployment rate and low to negative economic growth.For the past few weeks the Fed has been circling the wagons trying to convince markets it can raise the Fed funds rate slow enough to boost GDP growth higher than the 0.5 percent rate in the first quarter; while also raising it quickly enough to prevent inflation from getting out of control.

But, as evidenced in the following two charts below, you can plainly see that since July of 2015 economic growth has been languishing, while CPI has been rising during a relatively similar time span."