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Fed is losing credibility over its inflation narrative, Mohamed El-Erian says
The Federal Reserve is losing credibility over its long-standing view that inflation is transitory, according to Allianz Chief Economic Advisor Mohamed El-Erian. “I think the Fed is losing credibility,” El-Erian said on Monday. “I’ve argued that it is really important to reestablish a credible voice on inflation and this has massive institutional, political and social implications.” He was speaking to CNBC’s Dan Murphy at the ADIPEC energy industry forum in Abi Dhabi, the United Arab Emirates. El-Erian argued that the Fed’s inflation stance weakened the central bank’s forward guidance and undermined ... (full story)