{"id":1553727,"date":"2022-07-14T08:20:12","date_gmt":"2022-07-14T12:20:12","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1553727"},"modified":"2022-07-14T08:20:14","modified_gmt":"2022-07-14T12:20:14","slug":"3rd-wave-of-inflation-will-be-unleashed-if-fed-doesnt-get-its-act-together-el-erian","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/3rd-wave-of-inflation-will-be-unleashed-if-fed-doesnt-get-its-act-together-el-erian\/","title":{"rendered":"3rd Wave of Inflation Will Be Unleashed If Fed Doesn\u2019t \u2018Get Its Act Together\u2019: El-erian"},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"float:left\"><div class=\"counts mashsbcount\">30<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2F3rd-wave-of-inflation-will-be-unleashed-if-fed-doesnt-get-its-act-together-el-erian%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1553727&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><p>Economist Mohamed El-Erian has warned that a third wave of inflationary pressures is building and will be \u201cunleashed\u201d if the Federal Reserve doesn\u2019t act quickly.<\/p>\n<p>El-Erian,\u00a0the former CEO of American investment management firm Pimco, made the <a href=\"https:\/\/twitter.com\/elerianm\/status\/1547202769806757891\">comments on social media<\/a> on July 13, shortly after financial markets were shocked by the\u00a0U.S. annual\u00a0<a href=\"https:\/\/www.theepochtimes.com\/t-inflation\">inflation<\/a>\u00a0rate rising to 9.1 percent in June, marking its highest level since November 1981.<\/p>\n<p>Economists had forecast that inflation would come in at 8.8 percent in June.<\/p>\n<p>\u201cLooking forward, inflation will come down over the next couple of months. That\u2019s the good news,\u201d\u00a0El-Erian said on Wednesday.<\/p>\n<p>However, the expert noted that a \u201cthird wave of inflationary pressures\u201d\u2014the underlying causes of inflation\u2014is building,\u00a0and \u201cwill be unleashed if the Fed doesn\u2019t get its act together quickly.\u201d<\/p>\n<p>\u201cWith the first best policy option now long gone due to the first two stages of the ongoing Fed policy mistake, the recession risks are increasing accordingly,\u201d\u00a0El-Erian said.<\/p>\n<p>The economist added that this means that households, particularly those in the most vulnerable segments of society, are likely to take a second \u201cbig hit,\u201d adding that he believes \u201cmuch of this could have been avoided.\u201d<\/p>\n<p>Federal Reserve officials\u00a0in\u00a0mid-June raised the benchmark interest rate by 0.75 percentage points, and were widely expected to raise\u00a0rates by another 0.75 percentage points this month as inflation continues to soar.<\/p>\n<p>However, after Wednesday\u2019s\u00a0headline reading, experts have now increased the odds of a 100-basis-point rate hike at the Fed\u2019s next policy meeting to\u00a0<a href=\"https:\/\/www.cmegroup.com\/trading\/interest-rates\/countdown-to-fomc.html\" target=\"_blank\" rel=\"noopener\">77 percent<\/a>.<\/p>\n<p> \u2018Not Acceptable\u2019 <\/p>\n<p>According to data released by the <a href=\"https:\/\/www.bls.gov\/news.release\/cpi.nr0.htm\">Bureau of Labor Statistics<\/a> (BLS) on July 13, the cost of rent, food, energy, and medical care all rose in June.<\/p>\n<p>Food prices soared\u00a010.4 percent\u00a0for the 12 months ending June, marking the largest 12-month increase since the period ending February 1981, while the energy index advanced by 41.6 percent.<\/p>\n<p>Meanwhile, gasoline<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Economist Mohamed El-Erian has warned that a third wave of inflationary pressures is building and will be \u201cunleashed\u201d if the Federal Reserve doesn\u2019t act quickly. El-Erian,\u00a0the former CEO of American investment management firm Pimco, made the comments on social media on July 13, shortly after financial markets were shocked by the\u00a0U.S. annual\u00a0inflation\u00a0rate rising to 9.1 [\u2026]<\/p>\n","protected":false},"author":69,"featured_media":2315279,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"","fifu_image_alt":"","footnotes":""},"categories":[],"tags":[],"class_list":["post-1553727","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry"],"_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1553727","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/69"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=1553727"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1553727\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/2315279"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=1553727"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=1553727"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=1553727"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}