It isn't necessary to have a recession to bring inflation down, but a downturn is highly likely and Fed projections have been 'horribly wrong', Mohamed El-Erian says

Dec 12 2022 by Business Insider

 
Mohamed El-Erian, CEO of PIMCO

REUTERS/Jason Reed

A recession is highly likely, as the Fed has been too optimistic on inflation coming down, Mohamed El-Erian said. "They have been way too optimistic on inflation coming down and way too optimistic on growth." The top economist told CNBC he expects inflation to stay elevated at 4% and rates to remain high.

A recession is not necessary to bring inflation down, but it is looking like a downturn is now highly likely since the Fed's projections have...

Continue Reading It isn't necessary to have a recession to bring inflation down, but a downturn is highly likely and Fed projections have been 'horribly wrong', Mohamed El-Erian says