{"id":547212,"date":"2022-06-13T04:57:09","date_gmt":"2022-06-13T04:57:09","guid":{"rendered":"https:\/\/enterpriseam.com\/egypt\/2022\/06\/13\/el-erian-points-fingers-at-fed-for-us-inflation-as-recession-clouds-build\/"},"modified":"2022-06-13T04:57:09","modified_gmt":"2022-06-13T04:57:09","slug":"el-erian-points-fingers-at-fed-for-us-inflation-as-recession-clouds-build","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/egypt\/2022\/06\/13\/el-erian-points-fingers-at-fed-for-us-inflation-as-recession-clouds-build\/","title":{"rendered":"El Erian points fingers at Fed for US inflation as recession clouds build"},"content":{"rendered":"

<\/a> The Fed missed the boat on inflation, says El Erian:<\/strong> Allianz Chief Economist Mohamed El Erian told CBS\u2019s \u201cFace The Nation\u201d<\/a> that 40-year high inflation in the US could have been avoided had the Federal Reserve acted earlier. The Fed \u201cmischaracterized what inflation is and it fell behind,\u201d El Erian said. \u201cAnd the lessons of history is, once you fall behind, you lose the ability of the first best response.\u201d<\/p>\n

More price hikes and another 50-bps cut to come? <\/strong>\u201cWe may well get to 9% at this rate,\u201d El Erian said, days after US consumer prices rose to 8.6%<\/a> last month, their highest rate since November 1981. \u201cWe should look at the Fed to increase by at least 50 basis points this coming week,\u201d he said. Traders now see a 50% chance that the Fed will raise interest rates by an unusually large 75 bps when it meets on Tuesday and Wednesday this week.<\/p>\n

The US will likely fall into recession next year,<\/strong> according to nearly 70% of economists polled by the Financial Times<\/a>. Nearly 40% of the 49 respondents expect the US economy to enter a recession in the first half of next year, while 30% predict it to happen in the second half.<\/p>\n

What\u2019s a recession, technically speaking? <\/strong>It\u2019s a \u201csignificant decline in economic activity that is spread across the economy and lasts more than a few months,\u201d according to the National Bureau of Economic Research, which is tasked with declaring recessions in the US.<\/p>\n

Also worth noting:<\/strong><\/p>\n