The U.S. Federal Reserve has become too data dependent and has lost sight of its overall strategy, Mohamed El-Erian, chief economic adviser at Allianz, said Friday.
The economist told CNBC that a longer-term, more strategic outlook could see policymakers settle on a new inflation target of closer to 3%.
"Rather than be strategic, this Fed is overly data dependent, and has turned into a play-by-play commentator," El-Erian told CNBC's Steve Sedgwick at the Ambrosetti Spring Forum in Italy.
"The Fed should be strategic, the Fed should provide a strategic anchor, a stabilizer."
The U.S. Federal Reserve did not immediately respond to a CNBC request for comment.
Persons:
Mohamed El, Erian, CNBC's Steve Sedgwick, That's
Organizations:
U.S . Federal Reserve, Allianz, CNBC
Locations:
Italy