- Writing in Bloomberg, El-Erian makes the case that the dfed should not react to market volatility by signaling a larger or even a emergency meeting cut.
- El-Erian enumerates possible reasons for recent market volatility, including 1) Recent economic weakness 2) that rates are too high 3) crowded positioning 4) geopolitics and 5) us election uncertainty.
- Given these reasons, el-Erian believes a fed move would be an over-reaction and could set expectations down the road.
From this morning’s @opinion article (link below) on why “The Fed Should Resist Placating Markets.”https://t.co/6feK9zwIXG#economy #markets #FederalReserve #investing #investors #econtwitter pic.twitter.com/eC57EQGN7p
— Mohamed A. El-Erian (@elerianm) August 6, 2024
