The Fed should wait 'a couple years' before cutting rates as inflation is too sticky, top economist says

• The Fed should wait a "couple years" to cut interest rates, according to top economist Mohamed El-Erian.
• That's because it could take a while for inflation to fall to the Fed's 2% target.
• Cutting rates prematurely raises the risk of stagflation, El-Erian has warned.

The Federal Reserve should wait much longer than markets are expecting to cut interest rates, according to top economist Mohamed El-Erian.

Speaking to Bloomberg on Wednesday, the Allianz chief economic advisor said he believed Fed officials should push back their timeline for rate cuts by "a couple years." That's due to the sticky nature of inflation, he said, suggesting that central bankers risk letting high prices flare up again if they plan on cutting rates soon.