Action from Congress, not the Fed, is what’s needed to grow the US economy, Mohamed El-Erian says

• Mohamed El-Erian says the US economy has relied too heavily on the Federal Reserve for growth.
• Instead, it should be legislation from Congress that drives sustainable growth in the economy.
• “We lost sight of how we grow our economy in a sustainable and inclusive fashion,” El-Erian said.

After a decade of interest rate cuts and quantitative easing from the Federal Reserve, the US has lost its way on how to sustainably grow its economy, according to top economist Mohamed El-Erian.

In a new PBS Frontline documentary, Age of Easy Money, El-Erian highlighted that investors have become overly conditioned to rely on the Fed for ongoing stimulus to help boost the economy, when in fact that responsibility should fall to Congress.