Considering that the US economy is on a “bumpy journey to reach a better destination,” former CEO of the American financial investment company Pimco and chief economic advisor to Allianz SE Mohamed El-Erian renewed his criticism of the US Federal Reserve. He continued, “I am afraid we are risking a very high possibility of a devastating recession that could have been completely avoided.”
The US economy is travelling “bumpily to a better destination,” he continued in Sunday’s “Face the Nation” broadcast on CBS. Three times in a row, the US Federal Reserve increased its benchmark index by 75 basis points, and predictions are that it will do so again next month.
El-Erian was quoted by Bloomberg Agency as saying during the discussion concerning the US central bank: “Not only does it have to fight inflation, it has to reestablish credibility, so I am afraid we are risking a very high potential of a devastating recession that might have been fully averted.”
El-Erian cited the words of Jerome Powell, President of the US Federal Reserve, who said, “Some pain is unavoidable in the war against inflation,” in reference to the potential for a so-called “soft landing” of the economy.
According to Mohamed El-Erian, the US economy is travelling “bumpily.”
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