U.S. in for 'At Least 12 Months of Uncomfortable Inflation'

Mohamed El-Erian, Chief Economic Adviser at Allianz (which he identifies as the corporate parent of PIMCO, where he was chief executive and co-chief investment officer), forecast 10% or higher inflation in the United States in an appearance on “Face the Nation” March 13. He told host Margaret Brennan: “We, unfortunately, are going to have at least 12 months of uncomfortable inflation, something that we haven’t had since the 70s and 80s, and that’s going to be especially problematic for the more vulnerable segments of our society. It hits food and gas particularly hard.” El-Erian repeatedly blamed out-of-control inflation on the Federal Reserve’s refusal to stop its money-printing policy while inflation mounted. Now “the Fed is late,” he said, and “it has no good course of action.”