As the Federal Reserve eyes a period of transformation to a new chairman, famed economist Mohamed El-Erian is of the opinion that it can’t come soon enough.
The former Pimco CEO echoed calls from the likes of Treasury Secretary Scott Bessent for the Federal Reserve—and indeed its interest-rate-setting committee—to take more of a back seat in economic debate and instead focus on the big picture.
“This Fed went to sleep,” El-Erian, former president of Queens’ College Cambridge, told CNBC. He said the independent central bank needs to admit it made some mistakes: It needs to think about scenario analysis as opposed to point estimates; it needs to look more closely at supply-side economics; and it needs to improve its culture of compliance.
“There’s a lot of things that we have to focus on [at] the Fed, because it’s so central to our economic well-being,” he added.
