Top economist Mohamed El-Erian has some advice for Jerome Powell and the Fed: ‘Talk less, smile more’
Economía El destacado economista Mohamed El-Erian tiene un consejo para Jerome Powell y la Fed: Hable menos, sonría más Hace 11 minutos Noticias de Bitcoin Ethereum The Fed came under intense criticism for its delayed response to inflation last year, stepping in to raise interest rates when annualized inflation was already at 7.9%. Many critics targeted Fed Chair Jerome Powell, who along with several other top officials, had said in 2021 that rising prices were only temporary. One of Powell‘s most ardent detractors is Mohamed El-Erian, an economist and president of Queens’ College, Cambridge. El-Erians latest advice to Powell is about optics and how to avoid making a bad situation worse. “The least-bad option now consists of holding off on interest-rate hikes and being honest with the market about where interest rates are going. The Fed needs to maintain consistent communication,” El-Erian said in an interview with publicado el jueves. El-Erian, who has long spoken about how high interest rates risk hurting markets, said in the interview that the stock market has been especially jittery and that Powells public comments tend to send markets spiraling. El-Erian says Powell “isn‘t sticking to the script” and that it’s causing economic damage. When asked what advice he would give Powell, El-Erian