El-Erian says the Fed is behind on inflation and risks another recession if it is forced to catch up


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…


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