El-Erian thinks the employment situation is vulnerable, but the fed sees them as balanced.
- Mohamed El-Erian, speaking and writing on Bloomberg, has been warning for some time that the fed may be behind the curve and that the labor market has been weakening.
- Surprised by the speed with which the market has bounced back from the recent sell-off, given the consumer weakness, and market technicals. El-Erian also noted that the market “may be expecting too much from the fed.”
- Believes the fed will cut 25bps in September, but thinks the fed should cut more given that the “inflation risk is not much lower than the unemployment risk.”
