El-Erian Says US Can’t Avoid Stagflation Even as Fed Tightens
- Stagflation is ‘worst thing’ for central banks, El-Erian says
- Markets still to price in ‘significant’ economic slowdown
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The US economy won’t be able to avoid a bout of stagflation and markets have yet to tune into the risk of a significant slowdown in growth, said Mohamed El-Erian, the chair of Gramercy Fund Management and former chief executive officer of Pimco.
While the US can perhaps avoid a recession, “what is unavoidable is stagflation,” El-Erian told Bloomberg Television’s Francine Lacqua. “We’ve seen growth coming down and we’re seeing inflation remaining high.”