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El-Erian Says Investors Should Prepare for Bigger Market Swings

  • Fed unleashed liquidity wave, which eventually ‘tend to break’
  • Expects inflation at elevated levels for at least another year
Bloomberg business news
El-Erian: Markets Are Telling Fed to 'Go Ahead and Taper'

Mohammed El-Erian said investors should prepare for increased market volatility if the Federal Reserve pulls back on stimulus measures set in motion by the Covid-19 pandemic.

“I worry a little bit that this wonderful world we’ve been living in of low volatility, everything going up, may come to a stop with higher volatility,” El-Erian, the chief economic adviser at Allianz SE and president of Queens’ College, Cambridge, said on “Fox News Sunday.”