Economist Mohamed El-Erian criticizes Federal Reserve for policy missteps and internal dysfunction, calls for sweeping reforms. Fed's credibility at risk.

Leading economist Mohamed El-Erian is criticizing the Federal Reserve for a lack of credibility due to policy missteps and internal dysfunction. He called for sweeping reforms to address these issues. El-Erian emphasized the importance of looking beyond short-term decisions, like rate cuts, to focus on broader reforms. He highlighted Cleveland Fed President Loretta Mester's admission of mistakes within the central bank. El-Erian's comments were made on CNBC's "Squawk Box." The article points to internal acknowledgment within the Fed that changes are necessary to improve its forecasting and operations, as noted by El-Erian and Mester.