El-Erian Says Fed's 2% Inflation Target Would Crush US Economy

The transcript discusses the challenges of achieving a 2% inflation target without harming the economy, suggesting a higher stable inflation rate of 3-4% might be more suitable due to various supply-side issues. It also explores the idea of tolerating an above-target inflation rate and highlights the importance of having a clear policy direction despite being data-dependent.

In what way does the speaker suggest that the labor market functions impact inflation?

What does the speaker suggest about changing inflation targets after missing them?