The President of the Queens College at Cambridge University Mohamed El-Erian speaks during a panel discussion at the headquarters of the International Monetary Fund during the annual meeting of the IMF and the World Bank in Washington, DC on October 13, 2022.
James Lawler Duggan | Reuters
Mohamed el-Erian asked the chairman of the Federal Reserve Jerome Powell on Tuesday to voluntarily give up in order to ensure the independence of the central bank, which is the main business advisor alliance One of the first prominent economists that publicly take up such a position.
“If the goal of Chairman Powell is to protect the Fed's operational autonomy (which I think is important), he should step down,” said El-Erian in a morning post on X.
El-Erian, also President of Queen's College at Cambridge University, said that he was aware that his view had not regarded the Wall Street consensus, who wants Powell to end the rest of his term as chairman in May 2026. However, the former Co -Chief Investment Officer at PIMCO confirmed that the recurrence of the Powell would not be a “replacement” server.
But El-Erian said Powell was better than the current scenario in which he said that the Fed was confronted with “growth and expansion of the threats” to its independence. El-Erian said these threats would probably only increase if Powell remained a Fed chairman.
In the statement by finance minister Scott Bessent, El-Erian referred to the fact that the Fed had suffered from “mission crawl” in areas outside of its monetary policy responsibilities. Bessent announced CNBC on Monday that “the entire” Fed should undergo an assessment.
The statements come when President Donald Trump and his advisors have strengthened their attacks on Powell because of the decision of the Fed to keep interest rates stable since December. Powell said that Trump's plan has created economic uncertainty for steep tariffs and the bank pushed to keep interests unchanged when they are waiting for developments.
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