Japan’s Disasters Loom Over Global Economy: Mohamed A. El-Erian

Count me among those who believe that the latest statement from the Federal Open Market Committee upgraded the outlook for both growth and inflation in the U.S. Yet, what may prove much more significant about the statement lies in what it didn’t cover: namely, Japan.

In its usual concise manner, the FOMC informed us this week that America’s economic recovery “is on a firmer footing” and that inflation is facing “upward pressure.” The hope is that the former will prove durable and that the latter will be transitory though neither are certain.