Mohamed A. El-Erian , Columnist

Central Bankers Hope Trump Eases Their Burden

Monetary policy will stop being the only game in town if the president-elect spurs faster growth.

November 23, 2016 at 7:30 AM UTC

Mohamed A. El-Erian is a Bloomberg Opinion columnist. A former chief executive officer of Pimco, he is president of Queens’ College, Cambridge; chief economic adviser at Allianz SE; and chair of Gramercy Fund Management. He is author of “The Only Game in Town.”

Feel the stress draining away.
Photographer: Andrew Harrer/Bloomberg

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Financial markets have been surging the past two weeks, anticipating the potential for more stimulative economic policy after the spate of recent anti-establishment political surprises. Central bankers on both side of the Atlantic, while more restrained, also are preparing for measures that might produce both higher growth and faster inflation.

Following his election as U.S. president, Donald Trump and his advisers have confirmed plans to move quickly on the pro-growth elements of his program, including higher infrastructure spending, deregulation and tax reform. At the same time, he has downplayed the anti-trade components, limiting his remarks so far to U.S. disengagement from the yet-to-be-ratified Trans-Pacific Partnership rather than slapping on tariffs and dismantling existing arrangements such as the North American Free Trade Act.