Investing.com – Allianz Chief Economic Adviser (ETR 🙂 Mohammad El-Erian says investors should prepare for US interest rates to rise higher, faster and longer and, during the latest escalation in Ukraine, the prospects for the stock market seem even darker writes Business Insider.
“The Fed’s probable rate hike of 75 basis points, and associated forecasts and signals, will be part of the paradigm in the developed world: Rates will rise higher, faster and longer,” tweeted (NYSE 🙂 on Wednesday. .
Investors now expect the Federal Reserve to raise its base rate by 75 basis points to 3-3.25% today, and continue to raise rates further to keep inflation in check in the country, which hit a high in June. of the last 40 years.
El-Erian has repeatedly stressed how difficult it is to beat inflation without damaging the economy. Last Saturday he mentioned the prospect of global stagflation, a painful combination of high inflation and stagnant economic growth.
In September, he warned that an energy crisis in Europe, continued blockages in China and rising inflation in the US and lower consumer demand are making global growth more fragile, making central banks more likely to push their economies in recession.
– Materials from Business Insider were used in the preparation