Taps Coogan – September 2nd, 2021
Enjoy The Sounding Line? Click here to subscribe for free.
Enjoy The Sounding Line? Click here to subscribe for free.
Mohamed El-Erian, Allianz chief economic advisor, recently spoke with CNBC to warn that the Fed is falling further behind economic realities and misinterpreting the stagflationary nature of Covid.
Some excerpts from El-Erian:
“I did not (feel better after Jerome Powell’s Jackson Hole speech). I did not because. while Jerome Powell acknowledged two things, one that… inflation is persistently higher than what the Fed expected, and second, the movement among the FOMC to an earlier taper. He packaged his expectations in a very dovish tone and the market got it immediately…”
“The problem with the Delta variant in particular is it is stagflationary. Yes, it depressed demand, or at least the recovery in demand, but it also disrupts the supply chain even more…”
The key question for the Fed is why is it still trying to stimulate artificial demand in an environment with inflation above target for nearly all of 2021, persistent supply chain bottlenecks, and labor shortages.
Would you like to be notified when we publish a new article on The Sounding Line? Click here to subscribe for free.
Would you like to be notified when we publish a new article on The Sounding Line? Click here to subscribe for free.
For years businesses shouted they were seeing huge gains in productivity but the truth is that productivity can be difficult to measure. Before long, that will bring front and center the issue of how sagging productivity can help fuel stagflation.
The truth be told, many of us have wasted a full day or more on a machine that is malfunctioning or simply refuses to do our bidding. In addition, the garbage in garbage out pipeline has exploded. The article below delves into this subject.
https://brucewilds.blogspot.com/2021/08/sagging-productivity-will-fuel.html