Citi Executive Claims that the US Dollar will Undergo Massive Inflation in 2022February 9, 2022
The consumers in the US market are already worried about the upcoming storm of inflation headed their way. The news was first made public by the US Department of Labor, which issued a CPI index showing exorbitant inflation ratios. Later on, Federal Reserve chairperson Jeremy Powell revealed the plan to decrease the bond purchases and increase the interest rates in the country.
On the other hand, the US government has been printing excess money instead of performing Quantitative easing to jump-start the economy. Since the first COVID hit last year, the government has added $3.2 trillion additional fiat currency into the economy. While Fed maintained that the current inflation is only transitory for a long time, he eventually accepted that it exceeded the expectations of the government. Now, a Citi bank executive has revealed that the USD is going to devaluate in 2022
Citi Bank Chief Information Officer David Bailin was recently invited for an interview at the Squawk Box show at CNBC. Speaking to the journalists, Bailin claimed that during the next ten years, USD is very likely to keep devaluating. He further explained that the fixed-income employees would be at risk to earn the negative rate in the form of fiat remunerations.
He also discussed in detail the investment plans and new projects in store for next year by the Citi Group. Bailin commented that institutional investors have an open mind towards the upcoming economic boom from Asia. Reflecting on the matter of USD devaluation, he commented that it is very likely that 1 USD is going to be reduced to the value of 80-85 cents.
David Bailin recently told CNBC that the financial organization has plans to invest in real estate and private equity in the Asian territories. It is worth mentioning that the monetary decisions of Federal Reserves since the last two years to keep printing more money have been destructive and pushed down the interest rates to 0.25%.
This is the first time that the interest rates have dropped so low since the 2008 financial breakdown. Meanwhile, the inflation rates have risen to 6.8% during the same period. Financial reporter, Wolfstreet recently reported that the government is still working on a plan to inject another stimulus installment of $105 billion before mid-December. Under the current circumstances, influencers like Robert Kiyosaki are advising people to invest in Bitcoin, Ethereum, and other commodities.