El-Erian on Covid-19 policy risks and ‘zombie’ markets

This interview with Mohamed A El-Erian – the chief economic adviser at Allianz – took place on April 13. It was first published by our sister title, CentralBanking.com.

We have seen massive interventions by the US Federal Reserve in the past few weeks to underpin financial markets. The Fed’s balance sheet has already spiked past $6 trillion. It is now buying corporate bonds and offering a paraphernalia of liquidity instruments. What has the Fed got right? What has it got wrong? And what more