'Sounds Familiar?' Mohamed El-Erian Calls Out Powell's Déjà Vu On Supply Shocks—Economist Draws Historic Parallels On Fed Chair's Latest Message

Federal Reserve Chair Jerome Powell warned Thursday that the U.S. economy may be entering an era of more frequent supply shocks, CNBC reported. Powell said the economy may face more frequent supply shocks, posing a difficult challenge for central banks. The remarks drew a sharp reaction from economist Mohamed El-Erian, who echoed Powell’s quote on X with a pointed “Sounds familiar?” El-Erian’s comment drew parallels between today’s inflation risks and previous economic episodes, including the COVID-era supply disruptions and the stagflation of the 1970s. He has repeatedly cautioned that renewed tariffs and trade conflicts could trigger similar conditions, with low growth and high inflation pressuring central banks.