Federal Reserve Needs Reset Amid Credibility Risk and Structural Issues: Mohamed El-Erian

Mohamed El-Erian, Chief Economist at Allianz, is calling for sweeping reforms at the Federal Reserve, citing deep structural issues and internal dysfunction. He argues that the focus on short-term decisions, such as rate cuts, misses the broader point. El-Erian suggests a shift toward strategic policymaking, better forecasting methods, and a stronger compliance culture. He also criticizes the Fed's recent forecasting missteps and operational shortcomings, warning that the central bank's credibility is at risk.