Shannon Stapleton/Reuters
- Fed boss Jerome Powell's latest comments boost the risk of a crash in stocks, Mohamed El-Erian has warned.
- US stock indexes tumbled after Powell signaled bigger interest-rate hikes than expected ahead.
- The comments "could risk both economic well-being and financial stability," top economist El-Erian said.
Investors should be more wary about the risk of a recession or a crash in stock prices after Federal Reserve Chair Jerome Powell's latest comments rattled markets, top economist Mohamed El-Erian has warned.
The chief economic adviser at Allianz noted the dramatic selloff in US stocks that followed Powell's congressional testimony Tuesday. That shows the central bank had failed to properly signal its plan to keep interest rates higher for longer in a bid to tame inflation, he said.