Top Economist DOOMS Biden

President Joe Biden was doomed when Allianz’s head economist Mohamed El-Erian declared on CBS’s “Face the Nation” that the impending recession was entirely avoidable.

“I fear that we risk a very high probability of a damaging recession that was totally avoidable. One is mischaracterizing inflation as transitory. By that, they meant it is temporary, it’s reversible, don’t worry about it. That was mistake number one. And then mistake number two, when they finally recognized that inflation was persistent and high.”

“They didn’t act. They didn’t act in a meaningful way. Even Federal Reserve Chair Powell has gone from looking for a soft landing to soft-ish landing to now talking about pain. And that is the problem. That is the cost of a Federal Reserve being late. Not only does it have to overcome inflation, but it has to restore its credibility.”

Mohamed El-Elrian said, “So it’s made two big mistakes that I think are going to go down in the history books. One is mischaracterizing inflation as transitory. By that, they meant it is temporary, it’s reversible, don’t worry about it. That was mistake number one. And then mistake number two, when they finally recognized that inflation was persistent and high. They didn’t act.”

Major Garrett continued to ask, “Continuing your metaphor for slamming on the brakes, does that mean it is impossible to achieve the either literal or mythical soft landing?”

“Even Chair Powell has gone from looking for a soft landing to soft landing to now talking about pain. And that is the- the problem. That is the cost of a Federal Reserve being late. Not only does it have to overcome inflation, but it has to restore its credibility. So, yes, I fear that we risk a very high probability of a damaging recession that was totally avoidable,” El-Elrian answered.

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