'Sounds Familiar?' Mohamed El-Erian Calls Out Powell's Déjà Vu On Supply Shocks—Economist Draws Historic Parallels On Fed Chair's Latest Message

With Federal Reserve Chair Jerome Powell once again raising a similar set of concerns during his speech on Thursday, economist Mohamed El-Erian found it all too familiar and was quick to draw parallels between chapters of economic history.

What Happened: On Thursday, El-Erian posted on X, quoting Powell’s remarks on the state of the economy during the Second Thomas Laubach Research Conference early in the day.

During his speech, Powell said, “We may be entering a period of more frequent, and potentially more persistent, supply shocks,” before adding that it would be a “difficult challenge for the economy and for central banks,” reported CNBC.

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While quoting the central banker verbatim, El-Erian asks if the concerns raised “Sounds familiar?” This two-word response by the renowned economist highlights how the Fed’s messaging mirrors prior inflationary cycles and supply-side shocks over the years.

Why It Matters: El-Erian is likely referring to the Fed’s messaging during the COVID-19 pandemic in 2020, when the U.S. and the global economy faced similar supply shocks, with Powell as the Fed Chair.

However, he may also be alluding to the stagflation of the 1970s, a period El-Erian has frequently referenced in past commentary. He has warned that tariffs and trade wars risk creating conditions reminiscent of the Carter era, marked by low growth and high inflation.

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