Allianz chief economic adviser Mohamed El-Erian said in an interview that the current inflation problem in the United States could have been largely avoided if the Federal Reserve acted earlier.
“The problem for us all is they’re far away from the first best response,” El-Erian told CBS’ “Face the Nation” on June 12. “This is going to have enormous economic, social—it hits the poor—particularly hard institutional and political consequences. And most of it could have been avoided, had early actions been taken,” he added.
“The lesson of history is, once you fall behind,” he said, “you end up in this awful situation that we’re in today, where you need to make a choice. Do you slam on the brakes hard to control inflation and risk of recession? Or do you just tap on the brakes and risk inflation lasting much longer than it should?”…