Mohamed El-Erian, Chief Economic Advisor at Allianz, sounded the alarm for urgent Federal Reserve reforms in a recent CNBC appearance on December 1, 2025. He stressed the need for greater stability within monetary policy, highlighting concerns about unpredictable interest rate changes and their impact on market volatility. El-Erian’s comments underscore the growing unease surrounding Fed decision-making, particularly in light of fluctuating rate cut predictions that range from a potential 90% probability to as low as 30%. This erratic behavior has raised alarms regarding the future stability of the financial landscape. El-Erian argues that addressing these concerns is essential for bolstering economic stability and reducing the unpredictable nature of Fed policy, potentially contributing to calmer markets. His remarks echo past discussions on the need for reform within the Federal Reserve, with experts suggesting that a more predictable approach could benefit the economy and financial markets. El-Erian’s calls gain momentum as the debate intensifies about the Fed’s role in economic stability, particularly its impact on global market dynamics.