Mohamed El-Erian, chief economic adviser at Allianz and Bloomberg Opinion columnist, says that the Federal Reserve should stay focused on price stability and not overreact to the recent turmoil in banking. “The worst thing that we could do right now is to say ‘we have a credit issue coming up — let’s cut interest rates,'” El-Erian said in an interview with Bloomberg in Cernobbio, Italy. “If they do that we will end up with stagflation and financial instability.” El-Erian’s opinions are his own.
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