This time, even big rate cuts and other forms of easing may not be enough.
Stocks have whipsawed investors more in the past two weeks more than they have since early October, and it's likely to continue.
"It's going to paralyze China. It's going to cascade throughout the global economy," said the Allianz economic advisor.
Live updates of what's moving the market, including the coronavirus impact, Nike and Apple.
"At some point we're going to have to pivot," said the Allianz chief economic advisor. "But investors right now are just happy focusing on the short term."
The Allianz chief economic advisor says he doesn't think the phase one trade agreement is the first step to a long-term cooling in U.S.-China relations.
"The Fed has room to cut, but do you really want to use that now when the domestic economy is still doing well?" Mohamed El-Erian says.
Economist Mohamed El-Erian told CNBC Friday that investors need to think differently about the global bond market.
Economist Mohamed El-Erian says he's becoming more and more pessimistic that the U.S. and China can reach a deal to end their trade war.
"If you live in an interconnected world, you have no choice but to import the effect of negative policy rates in Europe," the Allianz chief economic advisor explains.
Normally, when the Fed starts loosening policy it does so amid clear-cut signs of economic weakness.
President Trump stands a chance of creating a new economic world order in his China trade fight, says the chief economic advisor of Allianz.
The central bank's shift to a more dovish stance has contributed to greater volatility in financial markets, according to Allianz's El-Erian.
The S&P 500 just ended its best start to the year since 1998. Here's what five experts say investors should expect as major market averages enter a new quarter.
Jim Paulsen, chief investment strategist at The Leuthold Group, and Mohamed El-Erian, chief economic advisor at Allianz, join "Squawk Box" to discuss the state of the markets heading into the second quarter of 2019.
Mohamed El-Erian, chief economic advisor at Allianz, joins "Squawk Box" to discuss the markets, Stephen Moore's nomination to the Fed, and what he recommends investors do heading into the second quarter of 2019.
The "peculiar" technicals in the market have to do with Europe and what's happening with the Fed, Allianz's chief economic advisor says.
Mohamed El-Erian, chief economic advisor with Allianz, joins "Squawk Box" to give his take on the economy, the markets, and much more.
A majority of small-business owners expect a recession within a year, according to the CNBC/SurveyMonkey Small Business Survey. Recession fears are higher among women, Democrats and Independents.