The economist Mohamed El-Erian says that the fed characterization of inflation is temporarily the worst reputation in history-Economics
The economist Mohamed El-Erian says that the fed characterization of inflation is temporarily the worst reputation in history-Economics
On Monday, December 13th, the Americans will discuss the Federal Reserve after the US consumer price index report published by the Bureau of Labor Statistics on Friday. Thousands of tweets on the subject of Federal Reserve were trendy on Twitter because inflation recorded the US economy. Mohamed el-Erian, chief economic consultant of the German multinational financial service company Allianz, said in a recently conducted interview that the term "temporarily" was the "worst inflation call in history".
The Allianz's chief management consultant says that the US Federal Reserve described inflation as "temporarily", was a bad decision
At the end of April 2021, members of the Offenmarkt Committee of the Federal Reserve (FOMC), told the American public that the Federal Reserve would leave the reference interest rate close to zero and the monthly bond purchases would be continued. The statements of the FOMC and FED chairman Jerome Powell emphasized only "temporary effects" would have an American economy. Members of the FED not only said that inflation would be temporary, but it was also routinely reproduced by the media, US politicians and amerikas Banking giants as well as.
If the USA really paid its debts, the Federal Reserve would not monetize it.
- axiomatic state enemy (@detocqueville14) 13. December 2021
Shortly before the Bureau of Labor Statistics from November was published in November, the “temporary” speakers began to support the claims that inflation was only temporary. The latest CPI report Times have reached 6.8 % in the same period in 2020. The costs for goods and services in America continue to rise every month, and many more Americans start to point out finger at the US Federal Reserve.
The name "Federal Reserve" reads, for example, Pretty much in Trend in the USA in thousands of To see tweets. On Sunday afternoon, the chief economy consultant of the German multinational financial service company Allianz criticizes the Fed in the program "Face the Nation" by CBS. Mohamed el-Erian says that the description was "temporarily" one of the worst calls in the history of the Federal Reserve.
"The characterization of inflation as temporarily is probably the worst inflation call in the history of the Federal Reserve and is very likely to lead to a political mistake," emphasized El-Erian during his interview. "From this week, the FED must quickly regain control of the inflation narrative and regain its own credibility," said Allianz's chief economic consultant. El-Erian added:
critics denounce the Fed's approach with terms such as "fraud" and "bankrupt". El-Erian says that the central bank can change its course
sven henrich , the analyst behind it northantradrader.com , Senewed the youngest tweet of US President Joe Biden when the President said he would increase the debt limit. "The United States pay their debts by accepting even more debts", Henrich tweeted . "[And] If there is not enough buyers for his debts, the Federal Reserve will buy its debts, currently of over $ 5.6 trillion.
Next year they will tell you that inflation has reached its peak because the price increases have stabilized and you feel better when shopping. pic.twitter.com/p4llmenhxn
- Sven Henrich (@northmantrader) 12. December 2021
The popular financial author Carol Roth also roasted the Fed's monetary policy decisions on Twitter. "If you go to your bank account, increase your credit digitally and then buy things with this new credit, this would refer to this as fraud," said Roth . "If the Federal Reserve does this, the monetary policy is called," she added. During his CBS interview, El-Erian claimed that there was a chance that the US Federal Reserve could take over the reins and control the economy. "If you catch up if you honestly say your mistake and take steps now, you can still get it under control," remarked El-Erian.
Up until now, the Federal Reserve has spoken about changes in interest rate and the withdrawal of quantitative loosening measures, but so far it has not implemented any of its discussions. El-Erian said that the US Federal Reserve should "take the foot off the gas" instead of throttling extremely quickly. The economist continued to say that the rich were more affected by inflation, such as a number of media experts have publicly claimed , El-Erian insists that households with low incomes suffer more from increasing inflation.
"There is a possibility that you have to increase interest rates," concluded El-Erian. "Look, it is important to stop inflation [from] to be embedded in the system because two things happen when inflation is embedded. First, you lose purchasing power and the poor suffer the most. Second, there is an overreaction of the Fed and then a recession and then loss of income.
What do you think of the recent criticism of the US Federal Reserve and the statements of Mohamed el-Erian about the "temporary" description of inflation by the Fed? Let us know your opinion on this topic in the comments below.
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