The US economy is facing the ultimate 'trilemma' as the Fed desperately tries to get inflation down, Mohamed El-Erian says

• Top economist Mohamed El-Erian said the US central bank is facing three major obstacles at once.
• Policymakers are navigating a "trilemma [of] price stability, maximum jobs, and also financial stability," he told Bloomberg TV.
• Meanwhile, a credit contraction in the bank sector is equivalent to 25-50 basis points of tightening.

The Federal Reserve is facing three major obstacles, and recent banking turmoil is making its job of tackling them more difficult, Mohamed El-Erian said.

"This just makes the Feds' ability to navigate this trilemma [of] price stability, maximum jobs, and also financial stability that much harder," he told Bloomberg Television Thursday.