Mohamed El-Erian Criticizes Fed Chair Powell's Interview Performance: 'He Struggled With Some Of The Smart Questions'

Federal Reserve Chair Jerome Powell faced sharp criticism from prominent economist Mohamed El-Erian following a Dallas Chamber event Thursday, where Powell’s cautious stance on rate cuts triggered significant market movements.

What Happened: El-Erian, Chief Economic Advisor at Allianz, critiqued Powell’s performance on social media platform X, noting that the Fed chair “struggled with smart questions” and “confused the economics of different possible scenarios.”

El-Erian suggested Powell might avoid similar interview formats in the future, particularly highlighting the chair’s unclear response regarding new monetary frameworks.

During the Dallas event, Powell emphasized the U.S. economy’s exceptional strength while maintaining a careful position on potential rate cuts. “Inflation is running much closer to our 2% longer-run goal, but it is not there yet. We are committed to finishing the job,” Powell stated, indicating no rush to ...

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