El-Erian believes the fed must cover key policy areas at Jackson Hole to avoid more future market volatility.
- Writing in Bloomberg, El-Erian says the Fed’s Jackson Hole meeting comes amid “erosion of 3 anchors of stability,” including economic growth, “effective” policy guidance and technical vulnerability as the result of pockets of over leverage.
- Says the feds top goal should be to “re-establish the effectiveness of forward policy guidance.”
- Doesn’t expect the fed to cover all of the critical issues he laid out in an earlier article, but would like the fed to cover 1) Where the economy and policy currently stand 2) the policy “destination” and 3) “how the fed will get there. Believes if the fed fails to cover these points we can expect more market volatility ahead.
From my @opinion article on this week’s Jackson Hole conference being a golden opportunity for the world’s most important central bank to regain control of the policy and economic narrative … and on why it is important to do so.
— Mohamed A. El-Erian (@elerianm) August 19, 2024
#economy #centralbanks #markets #federalreserve… pic.twitter.com/BzpCnFANzh
