El-Erian says Fed lost credibility with markets, American public
“Mohamed El-Erian, a closely followed bond-market strategist, says the Federal Reserve has a trust problem with financial markets and the nation over inflation.”
USAGOLD note: Analysts with an eye to history have equated the loss of Fed credibility with an increase in gold demand, and it is not difficult to understand why. Faith in the central bank, particularly when it comes to controlling inflation, is essential. When lost, investors eventually make their way to the safety of assets detached from the financial system.