Project Syndicate/Mohamed A. El-Erian/9-28-2022
“[M]arkets see a central bank that expects to cause more collateral damage as it tries to meet its inflation target. Fed Chair Jerome Powell said as much this month when he continued to distance himself from the possibility of a soft or ‘softish’ landing, as he once put it. Powell has now repeatedly signaled more ‘pain’ ahead, implying an uncomfortably high probability of recession.
USAGOLD note: El-Erian talks about what is arguably the most important contributor to financial market stability – the central bank’s credibility.