Writing an Opinion in the FT, Mohamed El-Erian reiterated some of his earlier points about the last mile of inflation.
El-Erian noted that the US has continued to outperform other developed economies internationally.
However, El-Erian warned that reaching the Fed’s 2% inflation target in the near term was unlikely and would require “accelerated deflation in services” along with continued goods disinflation.
El-Erian continued to argue that returning inflation to 2% “quickly” would have negative impacts on growth.
From today's @FT column: "Returning quickly to 2 per cent [inflation] was never going to be easy for the US #economy…. The recent data serves as a surprisingly early warning of the long and winding road ahead in the last mile of the #inflation battle."https://t.co/XEz9n5L93O
— Mohamed A. El-Erian (@elerianm) January 16, 2024
1 thought on “1/15 El-Erian in the FT: More reasons to be cautious about inflation last mile”
Sloane Santana