Economist El-Erian says the Fed has turned into a play-by-play commentator

The U.S. Federal Reserve has been criticized for being too reliant on data and losing sight of its overall strategy. Many Fed policymakers have been cautious about rate cuts, leading to concerns of being overly tight. Chief economic adviser at Allianz, Mohamed El-Erian, argued that the Fed should have a more strategic approach and provide a stabilizing anchor. El-Erian suggested that a new inflation target of around 3% might be more appropriate. He also noted that the Fed’s recent comments show an overreaction to data and emphasized the need for a holistic view of the economy.