Mohamed El-Erian, chief economic adviser to Allianz, The Fed’s monetary policy on CNBC’s Squawk Box cryptocurrencies spoke about.
The famous economist thinks that it is impossible to reach the 2% inflation target announced by the FED at the beginning, and in this context, this target can be reduced to 3%.
Mohamed El-Erian, if the inflation target changes, cryptocurrencies as well as of gold He said it will rise even higher.
El-Erain, who thinks that the FED started to tighten in monetary policy late, said the following on the subject:
“FED was supposed to start tightening monetary policy last year. In this context, it was late in the fight against inflation.
However, the Fed will have to change the inflation target. Because he knows that if the FED fails to meet the 2% target, he will lose confidence. So if the Fed’s inflation target goes from 2% to 3%, both gold and cryptocurrencies will rise.”
The famous economist El-Erain said that the real problem with rising inflation “Can we continue to live in an increasingly difficult and growing inflation environment? He said he had a question.
of Goldman Sachs Expressing that the probability of a recession of 35% should be taken very seriously, El-Erian said, “Actually, this is a very important ratio. Bank CEOs are concerned about the macroeconomic environment. Because inflation continues to increase, the FED is late for tightening its monetary policy and the way to fight inflation is very difficult.“ said.
What happens to #crypto & #gold if the Fed is tempted to raise their inflation target from 2% to 3%?
“They both go higher,” says @elerianm pic.twitter.com/QNPzFu8NnP— Squawk Box (@SquawkCNBC) April 18, 2022
Mohamed El-Erian, who has a positive approach to cryptocurrencies, stated in an interview last year that he thinks cryptocurrencies are a destructive power, but that it cannot be a global currency that can rival the US dollar.