El-Erian Says Hiking Rates Could Hurt US Growth

The transcript discusses the balance between inflation and interest rates, highlighting the risks of both underestimating and overestimating inflation. It critiques the arbitrary nature of the 2% inflation target, suggesting a more flexible target might be more appropriate. The speaker emphasizes the importance of evidence in assessing inflation expectations and warns of the potential negative impacts of the Fed's rate hikes on U.S. growth and investment.

What are the potential risks of holding interest rates too high for an extended period?

How does the speaker view the current inflation target of 2%?

What does the speaker suggest about inflation expectations and their stability?

Why does the speaker believe that the current inflation target may not be appropriate?

What is the speaker's expectation regarding the Federal Reserve's approach to inflation?