The Fed needs to show it will stay tough on inflation after 2 disastrous years where it has lifted then crushed stocks, Mohamed El-Erian says

Dec 20 2022 by Business Insider

 
Top economist Mohamed El-Erian.

REUTERS/Daniel Munoz

The Federal Reserve has lost much credibility after two disastrous years where it failed to act in time on inflation, Mohamed El-Erian said. Markets don't believe that interest rates will remain above 5% for long, he warned. The Fed must shake off the failures of 2021 and 2022 to win back its inflation-fighting credibility, according to the top economist.

The Federal Reserve will struggle to convince investors that it's committed to taming...

Continue Reading The Fed needs to show it will stay tough on inflation after 2 disastrous years where it has lifted then crushed stocks, Mohamed El-Erian says