El-Erian on Covid-19 policy risks and central bank capture

Former Pimco chief says Fed has gone too far, market function rules needed and chance opens for shared policy load

Mohamed El-Erian, Allianz

Mohamed El-Erian was chief executive of Pimco during the 2008 financial crisis, when the US Federal Reserve and other central banks took unprecedented action to stave off a depression. Now, a few months into the Covid-19 pandemic, they are going even further – and raising two new risks.

El-Erian, now chief economic adviser at Allianz, says massive central bank intervention has led markets to believe they can rely on support for asset values. And a focus on key institutions has pushed risk to