El-Erian: Fed Would Only Pivot Over Financial Stability Concerns

The transcript discusses a column by Bill Dudley on the Federal Reserve, comparing the current Fed under Chairman Powell to past Feds led by Volcker and Burns. Powell aims to emulate Volcker's credibility, frequently citing him in public statements. However, Powell faces a unique trilemma involving growth, inflation, and financial stability, unlike Volcker. The discussion highlights the potential risk of stagflation if financial stability issues are not addressed, emphasizing the limited flexibility when actions are delayed.

What does Chair Powell want to associate with Volcker?

What is the trilemma that Chair Powell faces that Volcker did not?

What could cause the Fed to pivot according to the text?

What risk is mentioned regarding financial stability?

How does the text describe the situation when you are late in addressing economic issues?