One of the major challenges President Jimmy Carter faced during his presidency related to the economy was high inflation, which peaked in the late 1970s. This period of economic turmoil is often referred to as " stagflation," a combination of stagnant economic growth, high unemployment, and high inflation.
The inflation was driven by several factors, including the 1973 oil crisis, which resulted in skyrocketing oil prices, and increased costs in various sectors. The Federal Reserve's policies struggled to control inflation without exacerbating unemployment, leading to a challenging economic environment. Carter implemented measures in an attempt to curb inflation, such as promoting energy conservation and deregulation of certain industries, but these efforts had limited success. The economic difficulties during Carter's presidency significantly contributed to his unfavorable approval ratings and impacted the 1980 election.