Economist Mohamed El-Erian Predicts ‘Sticky’ Inflation Despite Federal Reserve’s Efforts to Bring it Down

Economist Mohamed El-Erian Predicts ‘Sticky’ Inflation Despite Federal Reserve’s Efforts to Bring it Down


As investors examine the next move of the Federal Reserve, analysts, economists and market participants are also closely monitoring inflation levels. In Dec. 2022, the annual inflation rate dropped to 6.5%, and many experts predict it will decrease further. However, economist Mohamed El-Erian of the University of Cambridge believes inflation will become “sticky” in midyear, around 4%. The central bank, on the other hand, is primarily focused on reducing inflation to 2%.

5% Is the New 2%: Tight Monetary Policy and Interest Rate Hikes Unable to Curb Inflationary Pressure

Members of the Federal Reserve, including its 16th chair, Jerome Powell, have frequently stated that the bank’s goal is to bring inflation down to 2%. Powell has emphasized that the Federal Open Market Committee’s (FOMC) “overarching

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