Stagflation in the United States is inevitable

New York According to Mohamed El-Erian, the US economy will not be able to avoid stagflation. Meanwhile, markets have yet to adjust to the risks of a significant slowdown in growth, the former head of Pimco, a subsidiary of Allianz Fund, told Bloomberg TV.

Perhaps the United States should avoid a recession. Meanwhile, El-Erian, chairman of Gramercy Fund Management, said “stagflation is inevitable.” “Growth has slowed and inflation remains high.”

Among other things, the Fed’s assessment from last year that inflation will eventually recede is to blame.
El-Erian welcomed Federal Reserve Chair Jerome Powell’s announcement on Tuesday that the Fed will raise interest rates until inflation subsides. “Finally, the Fed is following up on actual developments,” El-Erian said. “But she still has a long way to go.”