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Former PIMCO CEO Mohamed El-Erian warned you that you’d miss Janet Yellen as Fed chair. And, well, he told you so.

“The characterization of inflation as transitory is probably the worst inflation call in the history of the Federal Reserve, and it results in a high probability of a policy mistake,” the former Pimco CEO and current Queens’ College president said Sunday on CBS’ “Face the Nation.”

“So, the Fed must quickly, starting this week, regain control of the inflation narrative and regain its own credibility,” he added. “Otherwise, it will become a driver of higher inflation expectations that feed onto themselves.”

Does noted economist El-Erian have any faith that noted non-economist and central-bank-speak illiterate Jay Powell will course correct and do those things? Well, let’s just say he might not have given old Jay four more years.

“If I were them, I would do three things, which they will not do,” he said during a “Squawk Box” interview. “I would 1) be very open and honest as to why I got the inflation call wrong and try to regain the inflation narrative. 2) I would go even further than doubling the rate of taper, and 3) I would open it up to the possibility that rate hikes may come faster than what the market has. They’re not gonna do that.”

El-Erian says ‘transitory’ was the ‘worst inflation call in the history’ of the Fed [CNBC]

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