# The Fed should send a double message

By [BSVA](https://paragraph.com/@bsva) · 2023-03-22

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    El-Erian, chief adviser at Allianz, said that if the Fed decides to pause rate hikes, he worries the result will be stagflation. Any concessions by the Fed to fight inflation would be "bad for the long run." He said: "The longer we let inflation ingrain in the system, the greater the cost to society, which is sad for Americans and for the market." El-Erian believes that the Fed's message now Should be double. They have two sets of tools to deal with inflation and financial stability, the two cannot be confused. “The lesson of the past few years is that every time we do this, we get into chaos and it ends up being worse,” he said. “A 25 basis point hike and explaining these other tools that have been very effective for financial stability.”

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*Originally published on [BSVA](https://paragraph.com/@bsva/the-fed-should-send-a-double-message)*