El-Erian faults Federal Reserve for failure to curb inflation

[IronLionZion]

Basically he confirms that the US economy is very strong and can easily raise interest rates to slow down inflation. BBB is part of the solution, not the problem as some misguided senators have claimed.

[JohnSJ]

1. The inflation is due to the shortages that were created by the previous administration mishandling

of the pandemic, and his trade wars

Increasing interest rates will not solve the shortages

[WHITT]

2. Indeed

IF the inflation were from an overheating economy, raising interest rates would slow that increase, but raising interest rates now would merely result in stagflation, as it will not lower inflation, but merely slow the economy.

[JohnSJ]

3. Agreed, or worse

[IronLionZion]

5. BBB does a lot to help shortages

which is already showing improvement in supply chain delays at the ports. GOP and 2 Dem senators have been using inflation and shortages as an excuse to block BBB.

[JohnSJ]

6. That inflation excuse Manchin and others are using is a false narrative.

[bucolic_frolic]

4. Totally agree, Powell is a tool

[JohnSJ]

7. Powell is a tool? No. El-Erian want him to increase interest rates. Until the shortages are

resolved, that would be a mistake

You think increasing interest rates would solve the shortages?

[bucolic_frolic]

8. You're entitled to your opinion. I stick with mine.

[ShazamIam]

9. When are they going to blame the sellers and call it what it is, price gouging to keep wages below

a living wage, then offer more subsistence level tax support like EITC which of course is a subsidy for the employers, not the people doing the work.