The Fed’s inflation view could drag the economy into recession, El-Erian warns

CNBC2021-06-28

KEY POINTS Fed officials are underestimating inflation and risking another recession, Mohamed El-Erian told CNBC on Monday. “Every day I see evidence of inflation not being transitory, and I have ...

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Comments

Venus168
2021-06-29
Venus168
u better watch out, u better watch out 'inflation' is coming to town....
robot1234
2021-06-29
robot1234
As of the end of FY 2020, the US debt was $26.9 trillion. Trump added $6.7 trillion to the debt since Obama's last budget, a 33.1% . Now PresidentJoe Biden had released his 6 trillion annual budget . Expect inflation, inflation and more inflation with such massive Quantitative Easing
- PearlynCSY:
  totally agree with you
- PearlynCSY:
  Americans addicted to printing money. In the long term, there's no free lunch
CGE
2021-06-29
CGE
Like and comment
CGE
2021-06-29
CGE
Like and comnent
ty91
2021-06-29
ty91
Like please
BlueHi5
2021-06-29
BlueHi5
Oh no

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}\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nThe Fed’s inflation view could drag the economy into recession, El-Erian warns\n</h2>\n\n<h4 class=\"meta\">\n\n\n2021-06-28 22:45 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://www.cnbc.com/2021/06/28/el-erian-says-the-fed-is-behind-on-inflation-and-risks-another-recession-if-it-is-forced-to-catch-up.html><strong>CNBC</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>KEY POINTS\n\nFed officials are underestimating inflation and risking another recession, Mohamed El-Erian told CNBC on Monday.\n“Every day I see evidence of inflation not being transitory, and I have ...</p>\n\n<a href=\"https://www.cnbc.com/2021/06/28/el-erian-says-the-fed-is-behind-on-inflation-and-risks-another-recession-if-it-is-forced-to-catch-up.html\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":".IXIC","symbol_name":"NASDAQ Composite","start_time":0,"source_url":"https://www.cnbc.com/2021/06/28/el-erian-says-the-fed-is-behind-on-inflation-and-risks-another-recession-if-it-is-forced-to-catch-up.html","article_id":"1129950691","we_media_id":null,"thumbnails":[],"rights":{"source":"cnbc_highlight","url":"https://www.cnbc.com/2021/06/28/el-erian-says-the-fed-is-behind-on-inflation-and-risks-another-recession-if-it-is-forced-to-catch-up.html","rn_cache_url":null,"customStyle":"body{padding-top:10px;}.ArticleHeader-headline{#titleStyle#}a{#lv2TextColor#}.ArticleHeader-time, .Author-authorNameAndSocial a{#sourceStyle#;}","selectors":".PageBuilder-pageWrapper","filters":".ArticleHeader-eyebrow, .RelatedTags-relatedTags","directOrigin":true},"url":"https://stock-news.laohu8.com/highlight/detail?id=1129950691","pubTimestamp":1624891529,"sourceInfo":{"source_id":"cnbc_highlight","name":"CNBC"},"weMediaInfo":null,"summary":"KEY POINTS\n\nFed officials are underestimating inflation and risking another recession, Mohamed El-Er","collect":0,"end_time":0,"defaultTopTitle":"cnbc.com","property":[],"viewcount":null,"language":"en","relate_stocks":{".IXIC":"NASDAQ Composite",".DJI":"道琼斯",".SPX":"S&P 500 Index"},"translate_title":"El-Erian警告说，美联储的通胀观点可能会将经济拖入衰退","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{".DJI":0.9,".IXIC":0.9,".SPX":0.9},"content_text":"KEY POINTS\n\nFed officials are underestimating inflation and risking another recession, Mohamed El-Erian told CNBC on Monday.\n“Every day I see evidence of inflation not being transitory, and I have concern that the Fed is falling behind,” he said.\nCentral bank leaders insist that the recent round of inflation will subside once short-term supply chain bottlenecks clear and 2020 data fades from comparisons.\n\nFederal Reserve officials are underestimating inflation and risking that the U.S. could fall into another recession, Mohamed El-Erian, the Allianz chief economic advisor, told CNBC on Monday.\nCentral bank leaders insist that the recent round of price pressures will subside once short-term supply chain bottlenecks clear and the 2020 economic shutdown period is no longer part of the year-over-year comparisons.\nBut El-Erian said he sees growing evidence that the Fed is wrong.\n“I have concerns about the inflation story,” he told CNBC’s Becky Quick during a “Squawk Box” interview. “Every day I see evidence of inflation not being transitory, and I have concern that the Fed is falling behind and that it may have to play catch-up, and history makes you very uncomfortable if you end up in a world in which the Fed has to play catch-up.”\nIf the Fed does fall into that position, it may have to raise interest rates and otherwise tighten monetary policy sooner than it would like.\n“Normally, we end up with a recession because you have to slam on the brakes as opposed to slowly taking your foot off the accelerator, which is what believe is going to happen,” El-Erian said.\nThe economy is still technically in a recession that began in February 2020, according to the National Bureau of Economic Research, considered the official arbiter in such matters. However, real GDP is just a shade below where it was when the downturn started and is likely to pass that level when the second quarter data comes in.\nInflation, though, has thwarted recoveries in the past, and recent data tell conflicting stories about the current pace.\nThe Fed’s favorite gauge, the personal consumption expenditures price index excluding the volatile food and energy sectors, in May rose 3.4% from a year ago, the highest level since 1992 an well above the central bank’s 2% target.\nThat came after a 5% increase in the consumer price indexand a6.6% burst in the producer price index, both well higher than anything the U.S. has seen since at least before the financial crisis.\nBut much of the price pressures have come in areas particularly germane to the economic recovery – used car prices, air fares, hotel prices and the like.\nWhile Fed officials see those factors abating in the coming months, El-Erian said he’s not so sure, even if the financial markets don’t seem to care.\n“If you were actually to look at the numbers on inflation, you would start having serious doubts in your mind as to how transitory inflation is,” El-Erian said. “But as long as the Fed believes it’s transitory, that is what matters for markets.”","kind":null,"is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"0","news_tag":"","news_rank":0,"symbols":[],"gpt_button":1},"commentList":[{"id":150420782,"gmtCreate":1624925074546,"gmtModify":1703847937826,"author":{"id":"4087185180550510","authorId":"4087185180550510","name":"Venus168","avatar":"https://community-static.tradeup.com/news/4896107829fe32fd3a83e066df1681a0","vip":1,"crmLevel":2,"crmLevelSwitch":0,"authorIdStr":"4087185180550510","idStr":"4087185180550510"},"htmlText":"u better watch out, u better watch out&nbsp; 'inflation' is coming to town....","listText":"u better watch out, u better watch out&nbsp; 'inflation' is coming to town....","text":"u better watch out, u better watch out 'inflation' is coming to town....","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":0,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/150420782","repostId":1129950691,"repostType":4,"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"langContent":"EN"},{"id":150526046,"gmtCreate":1624922364185,"gmtModify":1703847803958,"author":{"id":"3561596430587504","authorId":"3561596430587504","name":"robot1234","avatar":"https://static.laohu8.com/default-avatar.jpg","vip":1,"hat":"https://static.tigerbbs.com/b0a2963eb37c60c5d6d4a8dbcd266952","crmLevel":6,"crmLevelSwitch":1,"authorIdStr":"3561596430587504","idStr":"3561596430587504"},"htmlText":"As of the end of FY 2020, the US debt was $26.9 trillion. Trump added $6.7 trillion to the debt since Obama's last budget, a 33.1%&nbsp;.&nbsp; Now PresidentJoe Biden had released his 6 trillion&nbsp;annual budget . Expect inflation, inflation and more inflation with such massive Quantitative Easing","listText":"As of the end of FY 2020, the US debt was $26.9 trillion. Trump added $6.7 trillion to the debt since Obama's last budget, a 33.1%&nbsp;.&nbsp; Now PresidentJoe Biden had released his 6 trillion&nbsp;annual budget . Expect inflation, inflation and more inflation with such massive Quantitative Easing","text":"As of the end of FY 2020, the US debt was $26.9 trillion. Trump added $6.7 trillion to the debt since Obama's last budget, a 33.1% . Now PresidentJoe Biden had released his 6 trillion annual budget . Expect inflation, inflation and more inflation with such massive Quantitative Easing","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":3,"commentSize":2,"repostSize":0,"link":"https://ttm.financial/post/150526046","repostId":1129950691,"repostType":4,"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"comments":[{"id":6092790,"gmtCreate":1633388455828,"gmtModify":1663234893033,"authorId":4092458811577680,"author":{"id":4092458811577680,"idStr":"4092458811577680","authorId":4092458811577680,"name":"PearlynCSY","avatar":"https://static.tigerbbs.com/b3e9fe7af061efe80a756d23de62e7b3","vip":1,"crmLevel":4,"crmLevelSwitch":1,"individualDisplayBadges":[]},"repliedAuthorId":0,"objectId":150526046,"type":1,"supId":0,"prevId":0,"content":"totally agree with you","text":"totally agree with you","html":"totally agree with you"},{"id":6081510,"gmtCreate":1633302047153,"gmtModify":1663234836328,"authorId":4092458811577680,"author":{"id":4092458811577680,"idStr":"4092458811577680","authorId":4092458811577680,"name":"PearlynCSY","avatar":"https://static.tigerbbs.com/b3e9fe7af061efe80a756d23de62e7b3","vip":1,"crmLevel":4,"crmLevelSwitch":1,"individualDisplayBadges":[]},"repliedAuthorId":0,"objectId":150526046,"type":1,"supId":0,"prevId":0,"content":"Americans addicted to printing money. In the long term, there's no free lunch","text":"Americans addicted to printing money. In the long term, there's no free lunch","html":"Americans addicted to printing money. In the long term, there's no free lunch"}],"langContent":"EN"},{"id":150567292,"gmtCreate":1624922228716,"gmtModify":1703847795552,"author":{"id":"3584000899703971","authorId":"3584000899703971","name":"CGE","avatar":"https://static.tigerbbs.com/b8e167178f9d1ac99fa1763f8545f998","vip":1,"crmLevel":2,"crmLevelSwitch":0,"authorIdStr":"3584000899703971","idStr":"3584000899703971"},"htmlText":"Like and comment","listText":"Like and comment","text":"Like and comment","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":0,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/150567292","repostId":1129950691,"repostType":4,"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"langContent":"EN"},{"id":150562760,"gmtCreate":1624922145550,"gmtModify":1703847792481,"author":{"id":"3584000899703971","authorId":"3584000899703971","name":"CGE","avatar":"https://static.tigerbbs.com/b8e167178f9d1ac99fa1763f8545f998","vip":1,"crmLevel":2,"crmLevelSwitch":0,"authorIdStr":"3584000899703971","idStr":"3584000899703971"},"htmlText":"Like and comnent","listText":"Like and comnent","text":"Like and comnent","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":1,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/150562760","repostId":1129950691,"repostType":4,"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"langContent":"EN"},{"id":150568682,"gmtCreate":1624922081646,"gmtModify":1703847789568,"author":{"id":"3579421475844844","authorId":"3579421475844844","name":"ty91","avatar":"https://static.tigerbbs.com/6d9451c5894d6ca0b4485bad0568f720","vip":1,"crmLevel":8,"crmLevelSwitch":0,"authorIdStr":"3579421475844844","idStr":"3579421475844844"},"htmlText":"Like please&nbsp;","listText":"Like please&nbsp;","text":"Like please","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":1,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/150568682","repostId":1129950691,"repostType":4,"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"langContent":"EN"},{"id":150519791,"gmtCreate":1624921132013,"gmtModify":1703847758504,"author":{"id":"3583641915640836","authorId":"3583641915640836","name":"BlueHi5","avatar":"https://static.tigerbbs.com/671977f31bd2446b8dbd85361aab6883","vip":1,"crmLevel":2,"crmLevelSwitch":0,"authorIdStr":"3583641915640836","idStr":"3583641915640836"},"htmlText":"Oh no","listText":"Oh no","text":"Oh no","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":2,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/150519791","repostId":1129950691,"repostType":4,"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"langContent":"EN"}],"isCommentEnd":false,"newsSizeData":{"likeSize":113,"commentSize":17,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.29.1","shortVersion":"4.29.1","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/1129950691"}