Mohamed El-Erian on inflation and the recovery
Repost from 6-8-2021
“I’m more and more worried because of what I’m seeing on the ground, talking to CEOs and other people that really are participating in the price-formation process. We’re seeing significant supply bottlenecks. We’re seeing soaring transportation costs, difficulties in hiring. And all of these things are not immediately reversible. So when you look at the economy from the bottom up, you start sensing mounting inflationary pressures that are being encouraged by incredibly loose monetary policy.”
USAGOLD note: The thinking of a highly-respected economist without an ax to grind and a roundabout way of saying that the Fed is pouring fuel on the fire.