Brace for a sharp inflation drop that still won't be enough to return the economy to normal, top economist Mohamed El-Erian says

• Inflation will drop sharply, but prices won't get back to the Fed's 2% target soon, Mohamed El-Erian said.
• The top economist pointed to inflationary pressures emerging across the global economy.
• Those pressures aren't going away anytime soon, he warned in an interview with Bloomberg.

The economy will soon see  a sharp drop in inflation – but that still won't be enough to return it to the central bank's target, according to top economist Mohamed El-Erian.

The Allianz chief economic advisor pointed to rosier economic outlooks on Wall Street, with Goldman Sachs among big firms recently predicting sharp disinflation and limited recession odds in 2024.