This week may be the week central banks stepped away from strict inflation targets: Mohamed El-Erian
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- Опубліковано 20 бер 2024
- Mohamed El-Erian, Allianz chief economic advisor and president of Queens' College, Cambridge, joins 'Squawk Box' to discuss key takeaways from the Fed's interest rate decision, what to make of Fed Chair Powell's commentary, state of the economy, and more.
In uncertain times, how can one outperform with the S&P 500? my money goal of $3m seems far-fetched and just saving is not an option, do I seek a license advisor to help grow my funds, or wait for a favorable economy? I have barely 5 years to retirement.
patience is your best friend here, although you can benefit from the help of advisors, especially when it comes to smart financing.
Very correct, investing is plain-sailing using a well experienced advisor, and at first-hand experience, I've witnessed my investments compound over 280%, since Jan.2020 amid rona-outbreak, summing up nearly $1m as of today.
@@WhitneyRoss-dj4rf this is huge! been a fan of asking questions like Socrates, seeking information and handling certain duties to professionals, my $ 100k index has been shortened by 10% due to inflation over the years and I could really use a help at this point
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@@WhitneyRoss-dj4rf very much appreciated, just inputted Wendy Joyce Wood on the internet, spotted her consulting page ranked top and was able to schedule a call session. Ive seen commentaries about advisors but not one looks this phenomenal
I wish that guy would let El Erian speak without interrupting.
joe is awful, always like this
@@wallstreetwindow El Erian was about to say something very important, "When we look back I believe...". Then Joe interrupted him!!!!
@@sammynakhla7443 yep, he was interviewed on Bloomberg yesterday and they didn't do this to him; the WSJ has a front page article on its site trying to make the argument that the Fed is restrictive.... it's hard to believe it, but that's what El is saying too...
so disrespectful
Yessss
We never go back from crisis levels. Thats probably the most important statement in the entire interview
My favorite line was “the labor market is not as flexible as we would like it to be.”
Interpret that as you want… 😂
That’s why the dollar has lost 300-400 times its value since the Great Depression…dollar is not stable what so ever
For 30 years, I've managed my portfolio, holding 3 shares of Berkshire Hathaway Class A stock (BRK:A) purchased in the mid-90s around $17,000. Now, I'm selling some to add new Gen. Stocks. Considering market instability, should I reinvest in Gold instead of stocks?
Just buy Gold and protect your assets, the stock market is a rollercoaster.
The market is not necessarily a rollercoaster if you know your way around the market, there are various opportunities in the present market to accrue good profit, If you are not too savvy with the market, just buy and hold on strong companies with good earnings, or consult with advisors on ETFs and actively managed funds.
*Paula Eloise Davis* is the licensed advisor I use. Just research the name. You’d find necessary details to work with to set up an appointment
Thank you for sharing, I must say, Paula appears to be quite knowledgeable. After coming across her web page, I went through her resume and it was quite impressive. I reached out and scheduled a call
The Fed didn't just give up the fight against inflation at yesterdays meeting. That actually happened several meetings ago.
stagflation coming after Powell term ks over and claims supposed victory... wont be his problem
Wow. Talk about corrupt. Republicans and Democrats selling out their own people
you had me at first.. 🤣
@@pikl2rhe had me too
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Could you please tell me who your advisor is that provides guidance for you?
Mayra Femia Hetrick is the licensed advisor I use.
Just Google her name. You'd find necessary details to work with to set up an appointment
One thing is for certain, the dollar will continue lose purchasing power at an accelerating rate.
True and it's been obvious since 1971. History is very clear on how all debt based fiat currencies end.
Buy #Bitcoin
If we are in restrictive territory. Prices will drop period
Lofl, the right has been wetting their panties while saying that for 50 years....fact: our economy dominates globally now like never before. The rest of the world is in a recession while our policymakers almost can't believe how goldilocks our economy has been while drawing down M2 money supply.
@@toddalquist3391 Not. That's like buying air.
“When do we pay for this?”
Come on guys. Look around you, the people are paying for it, you just don’t associate with any of them, or even really understand how bad it is for them.
Exactly, we're already feeling it :/
Anybody with assets is fine. Anybody that doesn't have anything is hosed.
Yep
That's why becoming financially literate is very important now than ever.
Powell and Fed play political games before election in November.After November be different game
This is what is all about
@@albertoperin402 Nothing and everything
*Good job Mohamed, always a neutral, non-biased approach!*
Can someone at CNBC either get Joe Kernen to stop inserting his politics into segments or just get rid of the political hack. We watch cnbc for the market news not politics. We have literally ALL the other cable news networks for politics if someone needs their fix.
It just gets old and distracts from why we tune in to CNBC. For economics and business and market news. Not punditry editorial comments from right or left leaning opinions.
Seriously
im sure you wouldnt mind if he was a hard leftist , hypocrite
Why should the fed be cutting rate when inflation has not reach it target of 2% and the economy is not close to recession? My advice to the Fed is to have maximum of one 25bps cut in June and wait till next year after the election.
Agree, he is relentlessly Republican. He never stops - so dull
I'm sick of it.
This is the Second for me, after a while, that the CNBC is having an honest conversation. Thank you
El-Erian's continued campaign for the Fed to ignore their mandate and accept 3% inflation. Remember, these people don't rely on social security or fixed income. Higher food prices is preferable if it means a higher nominal return for their 8 figure portfolio
Well you seem unaware that 3% would drain up Medical faster in less than 9 years give or take. Boomers Nation is a big problem like Japan has shown for 33 years
I would’ve have agreed with his 3 percent approach. But I don’t think that the real world. It’s way more than that for the average day Joe. I think I have a better sense of inflation than the fed at this point.
Who cares about the price of food for poor slobs? The American economy is only meant to benefit the rich.
Well yeah, but that's exactly his point. It's you versus the 8 figure guys
Yes and no. I agree his incentives are not aligned with the middle and lower class. However, even if you're thinking of them, keeping interest rates very high for a very long time might cause a recession and mass unemployment. With inflation already taking place due to supply shocks, the average guy would find himself in an environment with both high inflation and no jobs available.
A lot of people blame the fed for inflation which is only true in part. A big reason for inflation is things that are outside the control of the fed (global trade, wars, oil prices). So if they're not able to control inflation, at some point they should at least make sure that people are employed (which is their other mandate).
They’re not going to pay for it. The youth are
He does not care about the youth, his kids or his grandkids.
In 2024, it’s ok for CNBC to sound like Peter Schiff
Becky and Joe seeing their groceries moon 😂
To combat the negative effect of inflation, it’s a good idea to diversify your portfolio across different asset classes, such as stocks, bonds, and real estate, since this can help protect your portfolio against inflation. I’ve heard testimonies of people accruing over $550k during recessions
In my opinion I feel for a successful long term strategy you have to really seek guidance from a well inclined expert truly they're the ones making the best from this current situation
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That's fascinating. Honestly as a newbie i wish i could experience this, If you don't mind me asking How can I contact your Asset-coach as my portfolio is dwindling?
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thanks for putting this out, it has truly rekindled the fire to my goal...
This channel is like the ESPN of the financial world
lol
Fed has engineered a super bubble. God, I love this country.
I like the "cleanest dirty shirt" analogy. Well, there is an Empror with a very white clean shirt, not accountable to anyone: Gold
OMG, Can't believe Joe is still sitting in that chair even after all these years. Going back to Bloomberg. Jeeeeeeeez.
Why bother interviewing with cnbc. The anchors want to do the talking and list their opinion, not the guest’s.
"the cleanest dirty shirt" love it !! so true
I dont buy the cleanest dirty shirt idea. If we can't afford the interest on the debt, we have to print more (sell more bonds) which is inflationary and if other economies are worse than ours, who exactly will buy our bonds and what interest rates will they demand?
Mo would make a good politician!😊
After even Egypt has joined the BRICS Trade Group, El Erian should include the thought of the Western Economy hitting a BRICS Wall as well?
The ability to direct Oil Prices appears to now be the groups leverage?
The fact that 70% of available resources now are inside the BRICS Group's Member Nations, seems to indicate the underlying reason for Inflation?
But I am not an Economist, I may have studied the subject beginning in 1970, but it is not my only occupation.....
Why 7 trillion ? Because Dollar is reserve currency and is inflating whole world not just US.
They need to increase rate by a quarter point. You are not going to get any cuts in 2024.
Absolutely agree they not going to cut this year
Love it... We now have the cleanest dirty shirt!
"cleanest dirty shirt" pretty much nails it 🤣
Manufacturing grew at the fastest pace in 22 months according to S&P Global in their 945am report. Did El-Erian read that?
I was gonna comment on this as well. It was pretty much the only answer he had to the question and it wasn't even correct.
Joe is way too politically biased in discussing national economics.
Investors are not looking at this correctly. The fact that they may do rate cuts, clearly means the economy is in deep trouble. We are going to see a collapse in the coming months. They’re not gonna be able to control this “soft landing”.
No pleb we just know what the Apparatus is doing
well economics and politics are literally tied together. economics on a national level can cause conflicts and wars and that's all driven by politics... "your values are what you spend your money on"
Its not politics ... is joe's stupidity that is the problem.
The official swaps in By-bit has lagged!!!
I just put up vid to show this
When you swap it gives you almost x 8>
joe is the most political person on the panel. why does he look for fault when things are good and try to blame it on the current administration. get rid of political agendas, get rid of joe.
Joe Kerenen should not be removed for his politics ... he should be removed beacsue he is an idiot
Keep the money printer going at all costs!
Demand side has a problem with disposal income, car / home / medical / rent gone up substantially.
He called it before, a wise man
When’s the un show up in all of this
The last 30 seconds of this video outstanding analogy
Except he is wrong. We are not the cleanest dirty shirt anymore. A new bright and shiny shirt was created about 15 years ago. It is called bitcoin. And it isn’t a national currency. It is global.
So… we are screwed…
@@chingron Bitcoin will never be a real currency. It's just a pet rock to keep people distracted.
He said it right; as long as we remain the cleanest dirty shirt, we are fine.
I love Joe Kernen because he asks the questions i've been asking
The understatement of the day “we are going to pay for this”. Debt is the beast at the door.
Buy bitcoin…
@@chingron I just can’t bring myself to buy electrons. I hope for you it works out.
@@headspaceandtiming2114 Electrons which are limited in supply. Unlike the dollar, which is being printed out of thin air to infinity.
The fact that those dollars can and are being printed to infinity means that bitcoin is far more “real” than dollars.
@@chingron Well, you may prove to be right. I might be going to the grocery store with a wheelbarrow full of money to buy some bread! I’m pouring myself another Whiskey…thanks!!
@@headspaceandtiming2114 Bitcoin being electrons is actually a benefit. It makes bitcoin the only asset on planet earth which cannot be confiscated. A quality that both poor and super wealthy are finding rather attractive…
If you buy Facebook, Google, or Microsoft stock, you are also buying electrons. Electrons which work together to perform some digital application. They are software.
Bitcoin is no different except that it’s application is a digital monetary system which is far far superior to the one we have today. A global monetary system secured by the largest computer network on the planet. A global monetary system which continues to gain value and can never be debased by the government.
When your government becomes corrupt or collapses, and you need to flee the country, the only asset you will be able to take with you is bitcoin. You certainly aren’t crossing the border with your gold, your land, or your Picassos…
Even the dollar is just electrons now. Some guy at the FED pushes a button, and the number of electron dollars magically increases. And he gives those electron dollars to his cronies, devaluing the electron dollars in your bank account.
Bitcoin has no magic button which can be pushed to create more electron bitcoins. And this is why bitcoin… despite being electrons… will win.
there is no problem , printing money yeah
Political reserve traded higher inflation for lower unemployment going into a reelection year. Impossible to get back to 2% without a recession and the establishment won't allow it to happen.
Good luck… I think bitcoin is going to blow up all their future plans going forward…
Bring back Reagonomics, and do what's best for the People, not private banking greed. Is mohamed el erian a mason?
Financial conditions are about to tighten, with the RPP running out and the BTFP just ended. The Fed needs to counterbalance that, hence they are slowing QT and keeping three cuts expected this year. I would not jump to thinking that they have given up on 2% inflation, but perhaps they have.
Mohamed is brilliant as always
Wow the guy that works at under armor
Most of the inflation problem is shelter. They need to cut the rates to fix that. Cmon guys. What a terrible understanding of economics
Argentina, El Salvadore and others coming soon will have cleaner shirts than US.
The economy? What economy? Government employees (federal, state and local) make up 40% of it. i see the big winners (besides tech monopolies) is the financial sector: big banks, credit card and insurance companies.
There is absolutely no reason to reduce interest rates UNLESS the goal is to help Biden's re-election.
That's the only goal.
A smart Mexican looking economist 😊
He’s Arab
America is the cleanest dirty shirt in the world. I like that!
First time I have agreed with Mo. The cleanest dirty shirt is the best way to describe this situation
The way I described it is all countries float in a debt based sea. They’re all heading to the bottom some just faster than others. And with each passing year they sink fast and faster.
What a fantastic ending. Put the last 15 secs on repeat and STUDY BITCOIN!
Yep the hokey pokey dance you put the right foot in take the left foot out , just change the name and it all ok .
Dollar standard - defunct
I don't understand where he's getting this "the Fed will accept slightly higher inflation" idea from. Powell said at the very beginning of the press conference over and over a versioni of "we will get to 2% you can count on that".
Doesn't matter what he said explicitly. Pay attention to the details. The political reserve is accepting higher inflation so unemployment doesn't rise above 4% going into Biden's reelection. That point was very clearly implicitly made.
Powell is a Republican. I think you're putting too much importance into implicit and not enough on explicit and therefore miscalulating. @@prolific1518
They have discussions behind closed doors about inflation targets. You can go back and see past discussions where some say 1%, some 2% and some 3% etc. But ultimately when they agree its accepted as a group.
Don’t keep money $$ in your banks, 15% debasement/year
I wish Mohammed had his own show. He's a lot more insightful than these two hosts who display an obvious, cynical bias on the regular.
The government is rich but the tax paying consumer is broke?
The Fed squeezes the consumer but supports the Treasury? WTF?
Cleanest shirt ...BTC
I’m new at investing but what I’ve learned is don’t fight the fed. When it’s a bullish market, you’ll make money off any quality stock.
Restructuring our supply chain = decoupling China = high inflation = devaluing dollar
The cleanest dirty shirt.
This was a bombshell briefing given I have been commenting on a lot of their vids saying the economy was weakening while they continued to say it was strong.
200 trillion on the debt clock!
Small talk doesn’t tell the time.
The Houthis blocking the most Suez Canal traffic ain't helping inflation. It is also hurting Egypt as typically Suez fees provide 10% of that governments budget.
First we need to wait and see how the commercial real state correction plays out. I think that by itself will slow down the economy enough such that the interest can stay where they are now.
Second, the protectionist measures we are taking against China do come with consequences. Making things in America are indeed more costly and prices will continue to rise.
Becky carries this show so hard nowadays. The guys are always so annoying and never let guests talk
Three Words: John Maynard Keynes
Why 7 trillion? Because of inflation!
I'm 45, white american guy. I take responsiblity for my situation, but I have a strong hatred, maybe jealousy towards rich people, I am screwed by the IRS , payed 23 k in taxes last year, I don't have any stocks, or a house, or a family. I cant afford any of that even though I have a business with 1 employee. I really hope that rich people get screwed and have to start paying taxes on unearned capital gains.
El-Erian is so politically motivated it's absurd,and Joe was calling him out essentially. Being ok with 3.5% inflation is insane, because then the rates lower and its 5% in the next reading.
Never trade based on these Macro economics news, analysis or data...
What gibberish. Inflation cannot be allowed to make life unaffordable for Americans. Raise everyone’s pay or deflate the currency.
Who is this damn cutie everyone keeps talking about?! Does she have a name? We'll stop seeing cutie - who the hell is that?!@!
4:05 Joe " where is the slowing you are talking about .. " Oh ... it will continue to slow ... as if he knew what the hell he is talking about
Mohammad is cool. Joe is a fool.
i like them both
the feds mandate of price stability is zero percent inflation , the fed moved to one percent inflation was acceptable then it was one point four percent was acceptable then it was two percent and now we have talk of how three percent as being acceptable , well it's pretty apparent inflation is not going down
😅
US debt growing at a trillion dollars every 100 days. Lower interest rates who buys the debt?
To me… let a recession happen. Rip the bandaid. Screw higher prices.
He's been wrong for years
Stocks comes first 2nd economy
Why can't they find somebody to replace Joe? That guy can't even finish one complete thought.
Cleanest dirty shirt, USA rocks da best
2055: "We're going to pay for this!"
"Ok grandpa let's get you to bed"
This same guy will change his statement of tomorrow fed comes says we will cut not more than 2 cuts
Why bring a guest if you're just going to keep interrupting them and keep emphasizing your opinion over and over? Just have a one man show by yourself.
Wouldn't it be great there was a store of value politicians couldn't devalue by money printing??? #Bitcoin
Tax extreme wealth like it's 1962 and a lot of problems become manageable.
Joe Kernan is obnoxius, let El-Erian speak for gods sake
So the Fed is choosing hyper inflation over recession. :shrug:
he is a big economic advisor and he talks like he doesn't understand money
3-4% is the new normal. Get over it.
This video made me want to purchase more bitcoin
Joe needs to go to FOX as a political commentator
3 millionaires discussing how we haven't been punished for the destruction of the currency. Take a walk through any major city in the U.S. or talk to a person making the median income in America and ask them if they think we are suffering the consequences of inflation.
how are they going to do tha mohamed with inflation runing away.