Allianz’s Mohamed El-Erian urged the Federal Reserve to acknowledge that inflation isn’t transitory and “ease your foot off the accelerator starting now.”
El-Erian, who expressed support for Lael Brainard over renominated Fed Chair Jerome Powell, said on “Fox News Sunday” that a new person in charge of the U.S. central bank might have found it easier to change course.
“I think it’s time for a change in policy at the Fed,” he said. “I was of the view that this may be easier with someone who hasn’t repeated over and over again that inflation is transitory.”
“Inflation is not transitory and it’s really important for the Fed to realize this,” he said.
El-Erian has said repeatedly the Fed is underestimating inflation risks as the U.S. economic recovery from last year’s pandemic shock accelerates price increases for everything from energy and food to consumer items.
Inflation could end up easing next year for the wrong reasons, he said in the interview broadcast Sunday.
“What I’m worried about is that it will ease because the Fed is going to have to hit the brakes,” El-Erian said. “So rather than hit the brakes hard next year, it’s much easier to ease your foot off the accelerator starting now”
El-Erian is Allianz’s chief economic adviser, president of Queens’ College, Cambridge, and a paid Bloomberg contributor.
The $139 billion TAMP has hired industry veteran Phil Rogerson, unveils $10 million commitment for strategic expansion in North Carolina.
CEO Allen Darby sees a coming shift in M&A dynamics as AI eliminates clerical roles at RIAs, leaving buyers and sellers to negotiate who benefits from the added margin.
Michael Bell explains how the PE push in retirement plans will benefit investors, why warnings around risks may be overplayed, and what it will take to get plan fiduciaries comfortable with private investments.
Research highlights the dominant role of workplace retirement plans and breaks down the major factors dictating workers' IRA rollover decisions.
The wealth tech firm is rolling out its "Do Anything" assistant as leaders and strategists tout the next evolution of artificial intelligence.
Orion's Tom Wilson on delivering coordinated, high-touch service in a world where returns alone no longer set you apart.
Barely a decade old, registered index-linked annuities have quickly surged in popularity, thanks to their unique blend of protection and growth potential—an appealing option for investors looking to chart a steadier course through today's choppy market waters, says Myles Lambert, Brighthouse Financial.
