El-Erian Says US Recession Not a ‘Done Deal’ in Fed Fight

Volcker is credited with bringing inflation under control in the early 1980s by ratcheting interest rates up to around 20%. Chair Jerome Powell, this time around, has to consider disruptions to the financial system as the Fed attempts to “borrow credibility” from the Volcker-led Fed to justify not being as aggressive with policy decisions, said El-Erian, who is also president of Queens College, Cambridge and a Bloomberg Opinion columnist.