CNBC, Released on 4/11/22

Part 1 (parts 2 & 3 below)

"There's a very, very narrow pathway for orderly disinflation," says @elerianm. "The market is starting to sense it that the Fed is going to push us into a recession because it has waited so long…I think the Fed is going to flip-flop–that's what I'm really worried about." pic.twitter.com/FaT1Ca8h00

— Squawk Box (@SquawkCNBC) April 11, 2022

Part 2

"We are going to see a rolling over of the drivers of #inflation," says @elerianm. "The Fed has no choice but to tighten monetary policy both through QE and higher rates. The question that no one knows is will the Fed restore its credibility and lead the market." pic.twitter.com/D2QXYO1bKu

— Squawk Box (@SquawkCNBC) April 11, 2022

Part 3

"Fundamentally we are changing the liquidity regime," says @elerianm. "That's what the bond market has been reflecting, and the stock market is adjusting to that." pic.twitter.com/B2wyzbSrAY

— Squawk Box (@SquawkCNBC) April 11, 2022

Mohamed El-Erian is the Chief Economic Adviser of Allianz, a multinational financial services company. He is the former CEO and co-Chief Investment Officer of PIMCO, a global investment firm and one of the world’s largest bond funds in the world. Dr. El-Erian also served as a member of the faculty of Harvard Business School. Before joining PIMCO, Dr. El-Erian was a managing director at Salomon Smith Barney/Citigroup in London and before that, he spent 15 years at the International Monetary Fund in Washington, D.C. His latest book is The Only Game in Town: Central Banks, Instability, and Avoiding the Next Collapse.

  economy, Fed, inflation, stagflation