Mottek on Money guest El-Erian: Fed mistakes will “will go down in the history books”

(New York, NY) — One highly respected economist says the Federal Reserve made two big mistakes that “will go down in the history books” for the way its dealt with inflation. Appearing on CBS’s Face the Nation, economist Mohammed El-Erian– who is heard regularly on KABC’s Mottek on Money, weeknights at 6– said the Fed’s first mistake was mischaracterizing inflation as transitory. He noted the second was not acting in a meaningful way last year when inflation was determined to be persistent. El-Erian explained those mistakes could lead to a third, which is slamming on the brakes too hard and tipping the country into recession. His comments come as the Fed appears poised to deliver a fourth large rate hike in early November.