Allianz Chief Economic Adviser Mohamed El-Erian on the state of the global economy and the outlook for Federal Reserve and ECB policy.
The U.S. economy is in a "very good place" thanks to a strong labor market, but Allianz Chief Economic Adviser Mohamed El-Erian is worried that internal and external headwinds will slow further growth.
El-Erian said in order for the U.S. economy to continue to grow at a 2.5 to 3 percent pace, the government should focus on implementing more policies, such as infrastructure, and U.S. leadership must also get other countries to focus on pro-growth.
U.S. stocks rallied on Friday after Federal Reserve Chairman Jerome Powell said the Fed would be "patient" in assessing the economy and that it could be flexible on its balance sheet reduction during a discussion with former Fed Chairs Janet Yellen and Ben Bernanke.
El-Erian said the Fed understands that the market doesn't like the notion that the balance sheet reduction is on autopilot because it puts an enormous burden on interest rate policy.
El-Erian also said the global market should shift its focus.