Al-Marsad newspaper: Muhammad Al-Arian, chief economic adviser to Allianz, revealed that America is heading towards a devastating recession due to two major mistakes from the Federal Reserve.
“I am afraid that we risk a very high possibility of a devastating recession that might have been avoided,” El-Erian told CBS’s “Face the Nation” program. Which was considered temporary, and therefore does not need a response.”
He added: “The second mistake is that the US administration did not take the necessary measures when it became clear that this inflation is high and persistent, and the Federal Reserve was raising interest rates in an attempt to curb inflation with growing concerns regarding a possible recession.”
He noted that the Fed now faces the task of not only overcoming the crisis, but also of restoring its authority following the belated reaction.
