{"id":351776,"date":"2021-10-12T18:36:56","date_gmt":"2021-10-12T15:36:56","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/nouriel-roubini-predicts-fed-will-wimp-out-on-raising-rates\/"},"modified":"2021-10-12T18:36:56","modified_gmt":"2021-10-12T15:36:56","slug":"nouriel-roubini-predicts-fed-will-wimp-out-on-raising-rates","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/nouriel-roubini-predicts-fed-will-wimp-out-on-raising-rates\/","title":{"rendered":"#Nouriel Roubini predicts Fed will &#8216;wimp out&#8217; on raising rates"},"content":{"rendered":"<p>&#8220;<strong>#Nouriel Roubini predicts Fed will &#8216;wimp out&#8217; on raising rates<\/strong>&#8221;<\/p>\n<div>\n<aside class=\"single__inline-module alignleft\">\n        <\/aside>\n<p>Economist Nouriel Roubini predicted the downfall of the US housing market in 2008. Now he\u2019s predicting the Federal Reserve will \u201cwimp out\u201d when it comes to raising rates.<\/p>\n<p>He said the Fed won\u2019t have the guts to put the brakes on the economy even as inflation threatens to spiral out of control.<\/p>\n<p>The economist, who became known as \u201cDr. Doom\u201d because of his prescient call on the 2008 crisis, has been persistently warning about \u201cirrational exuberance\u201d in markets \u2014 citing all the money sloshing around that\u2019s being plowed into cryptocurrencies and meme stocks, for instance. (Roubini in recent years has called bitcoin \u201cbulls\u2013t.\u201d)<\/p>\n<p>Roubini said the combination of sluggish growth and inflation \u2014 also known as stagflation \u2014 will continue for several quarters.<\/p>\n<p>Meanwhile, US core personal consumption expenditures \u2014 the Fed\u2019s preferred measure of inflation \u2014 will exceed 3 percent over the next year, he said. The Fed aims for a 2 percent PCE. The latest read of the figure was at a 30-year high \u2014 clocking in at 3.6 percent in August compared to the same period last year.<\/p>\n<p>Roubini said a bottled-up supply chain \u2014 and labor shortages \u2014 were helping to push inflation higher. Both issues also would hit economic growth, he said.<\/p>\n<figure class=\"wp-block-image size-large\"><img decoding=\"async\" loading=\"lazy\" width=\"1024\" height=\"682\" src=\"https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2021\/10\/Federal-Reserve-Investigation.jpg?quality=90&amp;strip=all&amp;w=1024\" alt=\"Federal Reserve\" class=\"wp-image-19776830\" srcset=\"https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2021\/10\/Federal-Reserve-Investigation.jpg?quality=90&amp;strip=all&amp;w=1535 1536w, https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2021\/10\/Federal-Reserve-Investigation.jpg?quality=90&amp;strip=all 1024w, https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2021\/10\/Federal-Reserve-Investigation.jpg?quality=90&amp;strip=all&amp;w=512 512w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\"\/><figcaption>Nouriel Roubini has warned the Federal Reserve will lose its nerve when it comes to raising rates.<\/figcaption><figcaption><span class=\"credit\">AP<\/span><\/figcaption><\/figure>\n<p>Amid these market conditions, Roubini believes it will be difficult for the Federal Reserve to hike rates or slow its purchase of assets \u2014 a reversal of quantitative easing.<\/p>\n<p>\u201cThey are going to postpone any finishing of tapering or raising rates,\u201d Roubini <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.bloomberg.com\/news\/articles\/2021-10-12\/roubini-says-fed-may-wimp-out-on-tightening-despite-inflation?sref=MTy2GeXk\">said in an interview with Bloomberg<\/a> on Tuesday. If growth slows, the Fed will \u201cend up being dovish,\u201d or hesitant to tighten monetary policy.<\/p>\n<p>The Fed said late last month that it may start raising its benchmark interest rate sometime next year \u2014 earlier than it envisioned three months ago. It\u2019s a sign that the central bank is concerned that high inflation pressures may persist.<\/p>\n<figure class=\"wp-block-image size-large\"><img decoding=\"async\" loading=\"lazy\" width=\"1024\" height=\"682\" src=\"https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2021\/08\/joe-biden-inflation-02.jpg?quality=90&amp;strip=all&amp;w=1024\" alt=\"Gas prices\" class=\"wp-image-19104406\" srcset=\"https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2021\/08\/joe-biden-inflation-02.jpg?quality=90&amp;strip=all&amp;w=1535 1536w, https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2021\/08\/joe-biden-inflation-02.jpg?quality=90&amp;strip=all 1024w, https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2021\/08\/joe-biden-inflation-02.jpg?quality=90&amp;strip=all&amp;w=512 512w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\"\/><figcaption>Nouriel Roubini warned of higher oil prices, which could mean gas prices rise even further.<\/figcaption><figcaption><span class=\"credit\">Justin Sullivan\/Getty Images<\/span><\/figcaption><\/figure>\n<p>And the NYU economist wasn\u2019t done with his concerning predictions: He said as inflation climbs higher, the price of oil will surge to $100 per barrel \u2014 a hefty hike from the current price of $83 per barrel. <\/p>\n<p>\u201cI see an upward trend in oil, coal, natural gas and other energy prices,\u201d he said.\n                        <\/p><\/div>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. 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Now he\u2019s predicting the Federal Reserve will \u201cwimp out\u201d when it comes to raising rates. He said the Fed won\u2019t have the guts to put the brakes on the economy even as&#8230;<\/p>\n","protected":false},"author":1,"featured_media":351777,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2021\/10\/HEALTH-CORONAVIRUS_POWELL-YELLEN-Preview-1.jpg?quality=90&strip=all&w=1024","fifu_image_alt":"","footnotes":""},"categories":[70897],"tags":[79281,117395,70550,70551],"class_list":["post-351776","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","tag-nouriel-roubini","tag-10-12-21","tag-federal-reserve","tag-inflation"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/351776","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=351776"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/351776\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/351777"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=351776"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=351776"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=351776"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}