[Allianz Chief: Raising interest rates should not be the best tool to fight inflation. Market "pressure" may be counterproductive] September 23rd, the market has been relatively calm since the Federal Reserve raised interest rates last week, but Mohamed El-Erian, Allianz's chief economic adviser and former chief investment officer of PIMCO, warned that the market may be forcing central banks around the world to raise interest rates. As background, after the Federal Reserve raised interest rates last week, financial markets quickly shifted to more hawkish pricing and are now even pricing in the possibility of three more rate hikes by the middle of next year. Interest rate expectations from other major central banks, including the Bank of England, are in a similar direction, although the Bank of England was the only major central bank not to raise interest rates in September. In a newly released opinion piece, El-Elyan elaborated on what new problems he believes will arise if the Federal Reserve and other central banks continue to tighten monetary policy. He warned that if this more aggressive monetary policy path ultimately materializes, both markets and the economy could face unnecessary pressure.