El-Erian Says US Recession Not a ‘Done Deal’ in Fed Fight
- Powell facing a tougher economic battle than Volcker, he says
- Says Fed wants to ‘borrow credibility’ of Volcker era
This article is for subscribers only.
A US recession is not a “done deal” thanks to a relatively resilient labor and credit market, while Wall Street has already priced in a high degree of interest-rate risk, according to Mohamed El-Erian, chief economic adviser at Allianz SE.
While the Federal Reserve faces an even greater challenge than the days of Paul Volcker, El-Erian says the US central bank may yet avert an economic downturn in its inflation-fighting campaign -- though the policy challenge looks enormous.