Federal Reserve officials are underestimating inflation and risking that the U.S. could fall into another recession, Mohamed El-Erian, chief economic advisor at Allianz, told CNBC on Monday.
Central bank leaders insist that the recent round of price pressures will subside once short-term supply chain bottlenecks clear and the 2020 economic shutdown period is no longer part of the year-over-year comparisons.
But El-Erian said he sees growing evidence that the Fed is wrong.
“I have concerns about the inflation story,” he told CNBC’s Becky Quick during a “Squawk Box” interview. “Every day I see evidence of inflation not being transitory, and I have concern that the Fed is falling behind and…