The Federal Reserve risks undermining its credibility if its monetary policies fail to reign in high inflation, warned Mohamed El-Erian, the well-known economist and former PIMCO chief executive,  in an interview with Yahoo! Finance on Aug. 7.
He blamed the central bank’s initial late response to the inflation crisis for potentially hurting its own reputation.
Inflation hit a 41-year high in June, pushing the Fed to hike interest rates by 75 basis points in its last two monthly meetings in order to control prices.
However, El-Erian did not think it was enough, commenting “we’ve got to get control of the inflation beast.”…