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The pursuing is the transcript of an interrogation with Mohamed El-Erian, main economical advisor astatine Allianz, that aired connected "Face the Nation with Margaret Brennan" connected Aug. 24, 2025.
MARGARET BRENNAN: We crook present to the U.S. economy. Mohamed El-Erian is the Chief Economic Advisor astatine Allianz, and helium joins america this greeting from Greenwich, Connecticut. Good greeting to you.
MOHAMED EL-ERIAN: Good morning, Margaret.
MARGARET BRENNAN: So we saw the Federal Reserve seat awesome connected Friday that the Fed is going to, arsenic expected, statesman lowering rates precise soon, but he's besides cited slowing economical maturation and a cooling occupation market. So wherefore past did the fiscal markets rally?
MOHAMED EL-ERIAN: Because helium yet pivoted to the hazard that matters astir for the U.S. system close now. By conception the Fed has to present 2 things, maximum employment and terms stability, and the Fed is looking astatine somewhat higher ostentation and a weakening labour market. And what Powell yet did, and galore of america consciousness helium should person done this earlier, is helium said the hazard to the employment broadside is higher than the hazard to the ostentation side, and truthful an involvement complaint chopped is warranted. As you know, galore of america felt helium should person chopped past month.
MARGARET BRENNAN: Well, the Fed seat said importantly higher tariffs are remaking the full planetary commercialized system. Tighter migration argumentation has slowed labour growth, and determination are large taxation and regularisation changes you can't quite, you know, quantify astatine this point, but it's a batch of uncertainty. Since economists person to physique disconnected of models and data, however bash you foretell wherever we're going if, basically, he's saying propulsion retired your models?
MOHAMED EL-ERIAN: So 1 of the problems is helium hasn't looked guardant enough. He's been precise information dependent, and truthful helium has tended to beryllium late. Look, determination is thing promising successful our future, and that is productivity enhancement that comes from breathtaking innovation successful AI successful beingness sciences and robotics and different areas. We conscionable person to negociate a challenging fewer months successful the play ahead. And if that situation is mishandled, we volition not beryllium capable to get the opportunities that we person that offset a batch of structural headwinds, and that includes precocious indebtedness and precocious deficits.
MARGARET BRENNAN: I privation to inquire you astir thing we were discussing with Congressman Lawe- Lawler conscionable earlier you, and that is this antithetic determination for the U.S. authorities to instrumentality a involvement successful spot shaper Intel. That institution has been struggling of precocious and its CEO was criticized by the president United States. He was criticized by the seat of the Senate Intelligence Committee, Tom Cotton. President Trump mentioned each of that connected Friday, and helium said this.
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PRESIDENT DONALD TRUMP:
He walked successful wanting to support his occupation and helium ended up giving america $10 cardinal for the United States. So we picked up $10 billion. And we bash a batch of deals similar that.
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MARGARET BRENNAN: The president said the CEO wanted to support his job, truthful helium offered a 10% involvement successful his company. Is this signaling a caller epoch for U.S. policy? I mean, cardinal readying of the economy?
MOHAMED EL-ERIAN: I don't deliberation so, Margaret. Look, arsenic the congressman said, it's bully to nonstop the connection that companies volition not get thing for nothing, and that is what they've gotten utilized to since 2008, each the bailouts. And what they are saying now--
MARGARET BRENNAN: --Which were paid back--
MOHAMED EL-ERIAN: Which were paid back, but astatine the time, the authorities took tremendous hazard successful many, galore areas. The astir important distinction, if I may, here, is betwixt ownership and control. Yes, the authorities tin ain 10% but it indispensable not power however this institution manages its affair, due to the fact that erstwhile we spell down that roadworthy that is simply a truly unsafe road, and that would devour distant astatine what makes America truly special, which is simply a dynamic, entrepreneurial economy.
MARGARET BRENNAN: And I judge the Commerce Secretary said determination won't beryllium control, but that is thing to ticker for. I privation to besides inquire you astir governmental pressure, not conscionable connected the Federal Reserve Chair, which you've nodded to, but the President is besides present threatening to occurrence Federal Reserve Governor Lisa Cook. They're accusing her without publically disclosed grounds of owe fraud and urging an investigation. In fact, the Justice Department wrote a missive to Chair Powell, encouraging her to beryllium removed. Are you acrophobic that this is starting to beryllium a signifier present of governmental interference with the Federal Reserve?
MOHAMED EL-ERIAN: So these allegations are unproven, and it's important to accent that. Having conscionable said that, this is the 5th clip successful the past 5 years that determination has been allegations against a Fed official. And already 4 of them person had to resign. So what I'm acrophobic astir is that determination seems to person been a civilization that has developed astatine the Fed that has resulted successful these 4 resignations. But I americium precise disquieted astir preserving Fed independence. And an autarkic cardinal slope is captious to the good being of the economy, and there's tons of reasons for that. So you know, 1 has to disting- separate betwixt the two. I can't talk to the unproven allegations, but I bash deliberation it's truly important to support the cardinal slope independence.
MARGARET BRENNAN: Well, arsenic I recognize it, the politician has said she wants to, you know, stock information, and is denying wrongdoing here. But conscionable the information that it is the President directing the attraction towards her doesn't this suggest that adjacent if Jerome Powell steps speech arsenic caput of the Federal Reserve, that this isn't going to halt this large spotlight connected the cardinal slope that is truthful powerful, and that the fearfulness you person of governmental interference whitethorn not spell away?
MOHAMED EL-ERIAN: Yes, and I- my fearfulness and my interest is that the longer Chair Powell is successful his position, and it runs retired successful May, the longer he's successful his presumption until then, the much this acts arsenic a magnet for attacking, not lone deeper attacks from the president, but overmuch broader from the governmental system. And that's 1 happening that rather a fewer radical are disquieted about.
MARGARET BRENNAN: Mohamed El-Erian, convey you truthful overmuch for sharing your penetration today. We'll permission it there. We'll beryllium backmost successful a moment.
English (US) ·