El-Erian: Seven Rate Hikes This Year Would Be Excessive

Mohamed El-Erian, a Bloomberg Opinion columnist, says the Federal Reserve "better get out there with guidance otherwise they are going to lose control of the policy narrative." He speaks with Bloomberg's Jonathan Ferro on "Bloomberg The Open."

[gabrielmartinez]

Rates should never be below inflation.

[shep]

"There is a 50-year history that the Fed never hikes rates once the fed funds rate has risen above the five-year yield. That point could come before the end of 2022, and suggests that it will be very difficult to continue."

[MrTigerStarX]

Interest rates need to be pegged 2% above inflation. The sooner the better.

[harrychu]

There already is an energy spike. Consumers are reporting utility bills triple previous months. Hikes have no impact on oil/gas prices.

[rickyricardo]

El Erian & Summers repeatedly take credit for calling the feds "policy mistake".
There are 900 PhD's working at the fed. They study the economy & build models to be able to place probabilities for policy outcomes.
What if it wasn't a mistake? Financial repression is a soft default on the national debt.

[sharkieboy]

I think we will see only 0.25 this time but 0.5 will come later this year. The fed need to get the market ready for the idea of aggressive rate hike. They will get more aggressive in selling assets too. Winter is coming but it will look like boiling a frog slowly.

[migs_frias]

Raising rates is inevitable given the sticky situation we are in right now

[dayneholt]

Interest rates 5 to 7% by 2023. Dow will hit 25 K before that. It does not matter what Russia does or does not do. Recession is coming.

[mauricesar]

Seven is excessive. Three 2% hikes is good to start fighting inflation.

[bamabum]

I wish Muhammad elaborated more on what he thinks the Fed should do from here, but can understand him not putting himself out there. And to his point there’s no longer term soft landing from here. Great interview tho, much better content than the nonsense on CNBC

[michaelpearson]

Why do US do business with non nato countries anyway like china

[leinad]

Raiseing rates will collapse asset prives by trillions

[gabrielmartinez]

This buffoon doesn’t understand that people cannot afford neither rent or houses anymore. People need to afford a place to live, and if Wall Street and billionaires will lose a few billions so be it, they can afford to buy a smaller boat or private plane

[mrme]

Our world has 3 fundamental practices that are problematic.

If we dont understand the root causes of a problem we will address the symptoms or the actors, not the causes.

The 1st is that large private and Central banks have obtained the Exclusive franchise to create ALL new Currency as Debt, with interest attached.

An increasing population needs an increasing currency, but it is all created as a debt bearing interest.
This indebts the whole world, every person, every government, in totally unpayable debts,   enslaving us all to bankers through personal debt or ever increasing excessive taxation, surcharges, permits, licences, registrations, regulations, fees, rates, duties, fines,   levies,   adinfinitum, of which an increasing volume goes straight to the debt creators, who created it for free. (At zero cost to themselves.)

2nd. Virtually no limitation plus fractional banking allows banks to create massive new Currency,   blowing massive bubbles (housing/stocks) which devalues everyone's savings and work by raising all prices.  

The fix ?

Stop all banks and financial institutions loaning out more than they have on deposit. Return legal currency creation to national treasury departments with a zero Inflation policy. 

This will not create inflation like some bankers/economists would like to have you think.  It is not WHO creates currency that drives the constant devaluation of your money & work,   it is THE VOLUME per population and productivity.
The banks increased the base currency supply by over 45 % since March 2020. This is further multiplied by fractional banking. You can't spend it off planet, and we've had no increase in population or productivity. How can it not devalue our savings, wages and retirement funds by around 50% as it enters the economy ?

3rd. Fiat currency whether paper or digital has no intrinsic value, thus it cannot be used as a long term store of value, particularly in an ever expanding fiat system.

The fix ?

Return to constitutional Silver, Gold, Copper & Nickle currency, designated by weight not cents/dollars. These will find their own local value.  These can't be printed to oblivion, have intrinsic value, and are a safeguard against selfish human nature.  Continue to keep the manufacture of Gold & Silver rounds by private mints & foundries to help keep the government mints honest as to premiums.

Correct these 3 Principles and >80 % of a nation's problems would disappear. Do not allow your masters the Debt slave creator's to tell you it can't be done. It is easily done. Beware. The WEF wants you totally enslaved with digital currency.

Otherwise, prepare for destruction.

Seek to understand these 3 practices. Check on if I have stated them accurately for yourself. Then Print this out, and share, Tweet, post.    Only we can save ourselves  !

These 3 paragraphs can change the world and get you and your family out of endless peasantry and serfdom.

[leinad]

Fed will go long gold soon....fort knox....backin up the debt

[mverma]

Mohamed you are awesome.
But trust me j powell always do opposite of what you recommend.

So now i think he will rapidly raise interest for sure. People in power always do not do things for others, they do it to justify their roles, authority and position.
It's time for Fed to show they are relevant to cover up their failures and behind the curve tag.