Mohamed El-Erian talks risks of Fed waiting too long to cut interest rates
20,339
Published 2024-06-13
Allianz Chief Economic Advisor Mohamed El-Erian tells Yahoo Finance's Seana Smith, Madison Mills, and Julie Hyman he believes there is a 35% chance the Fed may start cutting rates too late:
Already, the cushions that small businesses have and poor households have have already been eroded. Pandemic savings have gone, debt levels are high, delinquencies are going up. So I worry that if they carry through on what is in the SEP {Summary of Economic Projections dot plot], that will be too late," El-Erian outlines. "Now, the good news... is I strongly believe that had they had the CPI data a couple of days earlier and had they had today's PPI data, we would have gotten a different SEP."
El-Erian finds equity markets (^DJI, ^IXIC, ^GSPC) are totally ignoring the Fed, taking into account the massive run-ups the S&P 500 and Nasdaq Composite have seen over the past week. He also weighs in on headlining trends in the US labor market and Americans' income.
For more expert insight and the latest market action, click here to watch this full episode of Catalysts.
This post was written by Luke Carberry Mogan.
#youtube #ELERIAN #stocks
About Yahoo Finance:
Yahoo Finance provides free stock ticker data, up-to-date news, portfolio management resources, comprehensive market data, advanced tools, and more information to help you manage your financial life.
- Get the latest news and data at finance.yahoo.com
- Download the Yahoo Finance app on Apple (apple.co/3Rten0R) or Android (bit.ly/3t8UnXO)
- Follow Yahoo Finance on social:
X: twitter.com/YahooFinance
Instagram: www.instagram.com/yahoofinance/?hl=en
TikTok: www.tiktok.com/@yahoofinance?lang=en
Facebook: www.facebook.com/yahoofinance/
LinkedIn: www.linkedin.com/company/yahoo-finance
All Comments (21)
-
3.8% Inflation year over year is fine. It’s the 100-200% inflation over the past 3 years that is killing all of us!!!
-
Fortunately, Mr. El-erian is dramatically more informed than everyone else in this forum.
-
Don't worry. The FED will bungle it.
-
The Fed is not bailing you out of your bad choice Mohamed.
-
The risk of cutting rates too soon is a new slogan, Inflation: Higher for Longer.
-
He has been talking about the risks of keeping interest rates too high for over two years now.
-
El-erian is trying to protect his investments.
-
Inflation cooling slightly could be temporary. Saudi Arabi accepting purchase of oil in other currencies other than USD. US can't export there inflation anymore.
-
Worst economist out there, he isn't the FED chairman, and if he had that title inflation would be higher and he'll be fine with that outcome because he doesn't care how much you pay for food, shelter and energy
-
It's 36% actually
-
Good job Muhammad!
-
make a video about which indicator we should use and what it sets.
-
Either recession or stagflation sad times.
-
The way I see it, everyone should calm down, no cuts and no hikes, just give it time after December. Eventually, spending will slow, inflation will come down substantially and the Fed can confidently cut rates.
-
Too late was Feb 2024.
-
If interest rates are still high, the government is paying $1 trillion of interest to the $35 trillion debt .... today in the news, G7 summit talks included a new sum of $50 Billion to the war in Europe.... these numbers are not small impacts to the taxpayers especially many families are living below paycheck to paycheck stress everyday.
-
The fed is like a CEO of a company.. they are responsible to use leading indicators to project economic activity and adjust accordingly.. Using only old data is irresponsible and risks plunging us into major recession.
-
The dollar is literally being destroyed / debased / devalued. The best performing asset in the history of the world is BITCOIN. It is by far the best store of value. 10 years from now you’ll be thankful for every dollar you put into it.. My two cents.
-
Respect just a one way street now...I'm going wrong way...life..
-
More Stagflation
