Allianz chief economic adviser Mohamed El-Erian on Monday warned of the “implications” of the Federal Reserve’s stance that inflation is transitory.
While speaking with CNBC’s Dan Murphy at the ADIPEC energy industry forum in Abu Dhabi, El-Erian pushed back against the notion that inflation was transitory, predicting it could have a “lasting impact.”
“We are in this transition of central banks mischaracterizing inflation. The repeated narrative: ‘It is transitory, it is transitory, it is transitory.’ It is not transitory,” El-Erian advised.
He continued, “We have ample evidence that there are behavioral changes going on,” El-Erian said. “Companies are charging higher prices [and] there’s more to come. Supply disruptions are lasting for a lot longer than anybody anticipated. Consumers are advancing purchases in order