Free Republic

El Erian spoke on US TV over the weekend (CBS’s “Face the Nation”), saying that the Fed's insistence on calling inflation transitory is probably the worst inflation call in the history of the Federal Reserve And went on: “It results in a high probability of a policy mistake,” “So the Fed must quickly, starting this week, regain control of the inflation narrative and regain its own credibility. Otherwise, it will become a driver of higher inflation expectations that feed off themselves.” El Erian says the Fed should cut back on the liquidity it is providing ASAP.