El-Erian Says It’s Too Soon for Fed to Declare Inflation Victory

Risks ahead despite ‘remarkable’ progress in 2023: El-Erian
Friday data showed cooling in Fed’s preferred inflation gauge

President Joe Biden is touting better-than-expected economic growth on the campaign trail, but Bloomberg Opinion columnist Mohamed El-Erian says the Biden administration needs to do a better job overall of explaining their economic accomplishments to the American people. El-Erian’s opinions are his own.Source: Bloomberg

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By Carter Johnson and Jonathan Ferro

January 26, 2024 at 3:12 PM UTC

This article is for subscribers only.

It’s too soon for US policymakers to call victory on a soft landing as the economy moves from an inflation sweet spot into a more challenging environment ahead, according to Mohamed El-Erian.

The performance of the world’s largest economy in the third and fourth quarters was “remarkable,” El-Erian, the president of Queens’ College, Cambridge, told Bloomberg Television Friday. But “the big risk for the administration is that the economy slows this year because some of the drivers of last year’s growth are no longer there. And, secondly, inflation stops going down.”