Mohamed El-Erian, Allianz’s chief economic adviser in Germany, said Wednesday that an aggressive Fed tightening would not only hurt the US economy, it would affect other economies as well. Bloomberg Television Statement.
“We are not stepping on the brakes, we are stepping on the brakes,” he said of rapid rate hikes to cope with inflation. This is in reference to previous remarks by Bob Michael, Chief Investment Officer of JPMorgan Asset Management. “If the central bank holds back, there will be some strength,” Michael said.windscreenIt will also be communicated, “he said.
“The economy is starting to break through the windshield and the financial system is starting to break through the windshield,” El-Erian said. “This is the most anticipated interest rate cycle we have seen in a long time and there was no need for it.”
He is also Chancellor of Queens College, University of Cambridge, and a Bloomberg Opinion columnist.
Mohamed El-Erian, Chief Economic Advisor of Allianz, speaks to Bloomberg Television
Source: Bloomberg
news-rsf-original-reference paywall">Original title:El-Erian says the economy is starting to “go through the windshield”(extract)
