Saturday, February 26, 2022

From Jenna Orkin

US and Russian Physicians Warn War in Ukraine Risks Global Nuclear 'Catastrophe'

Top economist Mohamed El-Erian said the Federal Reserve won't be able to tighten monetary policy as aggressively now that Russia has invaded Ukraine.

Many on Wall Street expected several Fed rate hikes in 2022, starting with an increase of 50 basis points next month. Earlier this week, JPMorgan even predicted nine interest rate hikes this year of 25 basis points each time. 
"This takes 50 basis points completely off the table," El-Erian told CNBC Thursday morning. "It takes the 8, 9 hikes a lot of people were talking about for this year off the table, and thankfully so... I didn't think the US economy could accommodate and live with such slamming of the brakes of monetary policy."

 

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