Mohamed El-Erian: Hoping the Fed delivers two rate cuts starting July
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- Опубликовано: 14 апр 2024
- Mohamed El-Erian, Allianz chief economic advisor and president of Queens’ College, Cambridge, joins ‘Squawk Box’ to discuss the latest market trends, his expectations from the Fed, and more.
El-Erian's continued campaign for the Fed to ignore their mandate and accept 3% inflation. Remember, high inflation is good for the wealthy. These people don't rely on social security or fixed income. Higher food prices is preferable if it means a higher nominal return for their 8 figure portfolio
Amen
Currency debasement is about 10% a year. A 3% inflation rate isn't really the problem.
So the 100% increase in prices from 2022 to 2024 is here to stay. This guy is baked.
Hoping for rate cuts lol
😅😂😅 While gold is all time high, they are already scared to death.
These people live in another world. People aren't hoping the FED delivers 2 rate cuts, they're hoping we reach 2% inflation. Better yet we are hoping for a short period of time of deflation!!
Sure. Inciting expectations that when not fulfilled, open a nice shorting opportunity.
Someone started getting political for 2024
So inflation is about to explode again and this genius is still advocating for rate cuts?
Rate increases massively increases inflation. Deficits expand by trillions
@@A_D624 Yes, rate hikes are inflationary with debt is high. The Fed is wrong, just like they were in the great depression and 2008 financial crisis.
@@malceum Bingo
@@nickvin7447 I should add that the Fed knows what it is doing. The fed is corrupt and malicious, not stupid.
@@malceum Of course they do, it is an election year after all.
Retail is great - no need for any cuts this year based on the data.
El Erian is avoiding mention of the rather interesting paper having the title "The Seven Faces of 'The Peril'" by James Bullard, President and CEO of the Federal Reserve Bank of St. Louis, who does a rather fantastic job of justifying 2% inflation. New Zealand may have adopted first but it was Bullard who identified the suitable target.
A soft landing is not the most likely base line with oil prices currently heading upwards and middle east tensions increasing.
Why does he always count to three?
Since 2% inflation was a number pulled out of nowhere, I say 0% would be much a much better target.
Word!!!!
Actually once upon the time that 0% was the plan but Yelen disagreed.. Can't believe she's still here
Certainly would make more sense given the fed's mandate is "stable prices". Or even with their inflation averaging framework, given all this above 2% inflation they should be targeting below 2% to average things out.
But it has become very clear the fed has no interest in actually doing their job.
Save the cuts/ammo for an emergency.
is his real name mason el-erian?
Extremely knowledgeable. Tremendous credo. Watched his commentary and insight throughout pandemic - but not sure if he was ever right. Would be interesting to see how many e peers are accurate in their predictions. Idk
yes the target is arbitrary, but the whole point of having a target is to have stability. If you move the target when you fail to reach it, that's not stability.
So, we're going to talk about accepting a higher inflation target while wages aren't keeping up? Great!
They probably won't cut they will hike
Most analysts I have seen say rate cuts later like November or December or none this year
Fed funds rate increases are far more likely.
I bet these people have someone else go grocery shopping for them, there is a huge discrepancy between the super wealthy and others . Rich people love inflation cause it jacks up profit and income .
they should raise 2-4 points to stop these drunken politicians from spending
FED and other central banks should just move their target to 100%. That would be much easier.
High rates help wealthy just park cash and not work. Low rates forces us to utilize our money and helps grow supply chains and economy. It sounds counterintuitive but in this unique case it may help fight inflation as it becomes cheaper to build homes and payments on homes drop. Low rates will help us strengthen our supply chains. Now inflation from price gouging won’t stop until you go stop those companies doing it. Rates won’t matter in that situation.
But that is not how it really works... The rich having idle cash is a scrooge McDuck fantasy. In a period of high interest rates the rich buy bonds, CDs, and hold balances in banks all of which is capital financing for those banking/business activities you were alluding to.
GO NEW ZEALAND!!
Haven't you heard? It's opposite day! The Fed are aiming for a target of 4% inflation and doing brilliantly! Market is expecting 2 more interest rate hikes this year 😂
First Cut Earliest is December, 2024. The reality is we have war springing up all over. Unless there is a peace in Europe and the Middle East, core commodities (FOOD and ENERGY) are not getting cheaper any time soon. That's the base costs of any economy. The stuff you power your home with and the stuff you need to live daily.
If people keep buying less and less and at the same time retail sale MoM goes up by 0.8% (which means that goods' prices only over 1Month has increased by more than 0.8%), it would be shameless to sit here and ask FED to be not data dependent.
El erian is hoping for Fed cuts to help biden win politically 😂😂
This guy is strickly for the rich. He ignores how much higher grocery prices hurt the poor and their children!!! The fed shold raise interest rates and finally bust this inflation cycle.
They will cut because inflation is heading in the right direction.
Mohammad El Mexican
I don't care about this thing called "financial stability" bs. They make billions of dollars with risky bets and they take it all. Continue to gamble with 2nd, 3rd derivative vehicles. Then, when things go south, GOV comes in with normal people's money. No more. Rip the bandage off. It will hurt. Otherwise, this financial liquidity junkies will continue to kick the can down the road.
The money printer is smoking 🚬 hot turn it off no more wars !!!
Keep hoping lmfao
Aw are you a little permabear with a negative account as we are at all time highs? looool.
@@theunbearablebull yes my investments going up 300% in the last year really has me down lmfao
@@durkdiggler4346 If the Currency crumbles, what do you have?
The Germans between Wars used wheelbarrows to go to the store.
They needed the capacity for all the cash needed for a loaf of bread.
If the Currency image loses the power to convince Americans
that it still has value,
what do you have?
The Roaring Twenties were experienced in different fashion
in different parts of the planet.
@@danielhutchinson6604 all my money is in Bitcoin fk fiat currencies
@@danielhutchinson6604 It's called Bitcoin, and you should get used to the idea of it taking over the global financial system because that's the direction we're headed.
Nothing else on this earth can act as a trust-less, divisible, transferable, portable, and ACCEPTABLE currency.
How do you think China felt when the US seized $300B usd in Russian liquidity from the global financial system? What kind of message did that send? You think other countries want to be vulnerable like that, and dependent on the us and its allies for permission to participate in the global economy? The answer to that riddle is no.
That's why gold is at an all time high, that's why btc is at an all time high. The point is that people can steal or seize your gold, tax your gold, it will never be safe from malicious actors. How are you supposed to transfer enough to settle large transactions in an age where there are eyes in the sky watching everything everyone does? You simply can't, and that's how the idea of a ledger was a created. There is nothing superior to a digital ledger allowing trust-less transactions that settle almost instantly, tax free.
BTC is the Wei
Ok, arata,, synt, destui, care, privesc, acum😮
I used to respect this guys opinion. No more he is full of it.
Wate cuts
Two cuts when gdp growth is still strong, consumer spending is high, and inflation (esp super core excluding shelter, food and energy) is actually increasing? This guy is a clown. 3% inflation (which we aren’t even at, still above that) is NOT acceptable.
He's a shill for the democrat party.
This guy's a fool
He dumb
Never going to happen. Cant happen. MOHAMMED SHOULD CUT HIS LOSSES AND TAKE A TAX WRITE OFF
This guy a 🤡🤡🤡
Make this the main team. Becky can stay but Joe has gotta go. No I'm not talkin Biden.
No cuts-higher forever.Cancel him.