Mohamed El-Erian, chief economic adviser to Allianz in Germany, said on Thursday that an aggressive Fed tightening would not only hurt the U.S. economy, but also affect other economies. Statement on Bloomberg Television.
“We’re not hitting the brakes, we’re hitting the brakes,” he said of the rapid rate hikes to deal with inflation. This is in reference to the earlier remarks by JPMorgan Asset Management Chief Investment Officer Bob Michael.“If the central bank hits the brakes, there will be some force,” Michael said.windshieldIt 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 front-loaded interest rate cycle we’ve seen in a very long time and there was no need for it.”
He is also Chancellor of Queens College, University of Cambridge, and a columnist for Bloomberg Opinion.
Allianz Chief Economic Adviser Mohamed El-Erian speaks on Bloomberg Television
Source: Bloomberg
news-rsf-original-reference paywall">Original title:El-Erian Says Economy Is Starting to ‘Go Through the Windshield’(excerpt)
