(Bloomberg) -- Allianz SE’s Mohamed El-Erian urged the Federal Reserve to acknowledge that inflation isn’t transitory and “ease your foot off the accelerator starting now.”

El-Erian, who expressed support for Lael Brainard over renominated Fed Chair Jerome Powell, said on “Fox News Sunday” that a new person in charge of the U.S. central bank might have found it easier to change course. 

“I think it’s time for a change in policy at the Fed,” he said. “I was of the view that this may be easier with someone who hasn’t repeated over and over again that inflation is transitory.”

“Inflation is not transitory and it’s really important for the Fed to realize this,” he said.

El-Erian has repeatedly said the Fed is underestimating inflation risks as the U.S. economic recovery from last year’s pandemic shock accelerates price increases for everything from energy and food to consumer items.

Inflation could end up easing next year for the wrong reasons, he said in the interview broadcast Sunday. 

“What I’m worried about is that it will ease because the Fed is going to have to hit the brakes,” El-Erian said. “So rather than hit the brakes hard next year, it’s much easier to ease your foot off the accelerator starting now”

El-Erian is Allianz’s chief economic adviser, president of Queens’ College, Cambridge, and a paid Bloomberg contributor.

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