Allianz chief economist predicted bitcoin to rise due to the Fed’s actions

According to Mohamed Ali El-Erian, this will happen if the target inflation rate is raised

19.04.2022 - 08:15

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What’s new? Bitcoin and gold may rise if the US Federal Reserve System (Fed) raises the target inflation rate from 2% to 3%. Mohamed Ali El-Erian, the chief economic adviser at asset management firm Allianz, said this on CNBC.

Source: Twitter.com

What else did El-Erian say? In his view, a change in the annual target inflation rate by the Fed is a likely scenario. Because it will undermine the credibility of US monetary policy if the initial target is not met. In the comments to the publication, users stressed that cryptocurrencies have always been positioned as a protection against inflation and depreciation of the dollar. However, inflation growth has so far failed to boost cryptocurrencies, raising doubts about the veracity of this thesis.

Mohamed Ali El-Erian is an American businessman and chief economic adviser at Allianz, the parent company of PIMCO. He is the author of the book “The Only Game in Town: Central Banks, Instability, and Recovering from Another Collapse.”

What had happened before? Robert Kiyosaki, American writer and author of the bestseller “Rich Dad Poor Dad,” also spoke about the further growth of inflation. In his tweet of April 16, 2022, he suggested that hyperinflation and depression are coming and called for buying gold, silver, and bitcoin.

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