Federal Reserve Chair Jerome Powell warned Thursday that the U.S. economy may be entering an era of more frequent supply shocks, CNBC reported. Powell said the economy may face more frequent supply shocks, posing a difficult challenge for central banks. The remarks drew a sharp reaction from economist Mohamed El-Erian, who echoed Powell’s quote on X with a pointed “Sounds familiar?” El-Erian’s comment drew parallels between today’s inflation risks and previous economic episodes, including the COVID-era supply disruptions and the stagflation of the 1970s. He has repeatedly cautioned that renewed tariffs and trade conflicts could trigger similar conditions, with low growth and high inflation pressuring central banks.
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00:00It's Benzinga bringing Wall Street to Main Street.
00:02Federal Reserve Chair Jerome Powell warned Thursday that the U.S. economy may be entering
00:07an era of more frequent and persistent supply shocks, CNBC reported.
00:12Powell said the economy may face more frequent and persistent supply shocks,
00:17posing a difficult challenge for central banks.
00:20The remarks drew a sharp reaction from economist Mohamed El-Aryan,
00:24who echoed Powell's quote on X with a pointed,
00:27sounds familiar? El-Aryan's comment drew parallels between today's inflation risks
00:33and previous economic episodes, including the COVID-era supply disruptions
00:38and the stagflation of the 1970s. He has repeatedly cautioned that renewed tariffs and trade conflicts
00:46could trigger similar conditions, with low growth and high inflation pressuring central banks.
00:52For all things money, visit Benzinga.com slash GSTV.