El-Erian Fears the Fed Will End Up 'Flip-Flopping'

Mohamed El-Erian, a Blooomberg Opinion contributor, says Federal Reserve Chair Jerome Powell is "very late" on policy tightening and the collateral economic damage will be significant. He speaks with Jonathan Ferro on "Bloomberg The Open." El-Erian's opinions are his own.

[alphabeta]

Thank you El-Erian for being transparent and a straight shooter.

[ArmArmy]

Dr. El-Erian is the best of the best. I really appreciate his analysis

[mykelcrawford]

I love El-Erian!!! While all of the others have been saying that the economy was healthy and strong

[MrUGA]

Bravo Muhammad; while other economists talk BS and you never get to the core of the problem, he always cut through the market wails and noises to the point; ❤️

[griffinsutich]

2008: No inflation, big recession
1970s: Inflation, flat economy
1930s: No inflation, depression
This one:








Massive inflation, deep depression = nuclear bomb

[yitcvjrTmkjV]

The current rate is only 1.5%. It should be at least 3.5% right now. The Fed was late then and they are still late now.

[kvnsns]

He's right about the Fed being very late. Interest rates take a long time to be fully felt throughout the economy. More pain ahead, a lot of which could have been avoided by not having rates so low for so long and not having done QE. The term "everything bubble" is on point.

[williamandrews]

The majority of voters are not capable of electing politicians who have the courage and fortitude to do what needs to be done.

[tonytiger]

The mistake was made when they started QE 12 years ago

[krystal_clearwater]

The Fed responds to inflation headlines as opposed to headline inflation. When inflation recedes from headlines in popular media, Fed will take a chill pill ? Dr El Erian is fabulous !

[markbranch]

“Damage is going to be significant”. Translation, recession is eminent.

[mediumraresteak]

"Very late" is the understatement of the year. Should've stopped in 2020.

[ocswoodlands]

El-Erian is so right... I am a new fan 😆

[KevinStClair-lnir]

When everyone's crying, we should be buying. Let it burn. 🔥

[jeffreymarshall]

Last year, hell, the Fed should have stopped QE and begun to normalize rates in the summer of 2020. And the stimulus packages should have ended there as well.

[castlecircle]

Does Muhammad have his own podcast?, he should. His own channel, seriously, he is so brilliant and so relatable, he speaks to you not down, doesnt stroke his own ego, so good.

[johngrear]

The main takeaway is if you can act and appear calm, you can literally get away with anything. It's no surprise that this is where psychopaths excel.

[jeffreymarshall]

If the Fed flip flops the bubble and the pain will just be that much worse.

[jayceh]

Historically, the central bankers always print when faced with pain. And as a result, their currency loses reserve status.

[austinfuoco]

We don’t need artificially low interest rates to stimulate the economy.. We need less government spending. The federal government has been enabled by the Fed for far too long.