Ahead of schedule: Why the Fed should cut rates in July, according to Mohamed El-Erian
==========
Mohamed El-Erian believes the Fed should start cutting interest rates in July due to negative economic surprises, including disappointing retail sales and manufacturing prints. El-Erian argues that the economy is slowing faster than expected, and the Fed should not rely solely on past data. He suggests that the Fed should cut rates three times this year, but realistically expects no more than one or two cuts. El-Erian also advocates for raising the Fed's inflation target to 3% from the current 2% rate. However, the market currently predicts a policy pivot in September, and the odds of a summer rate cut stand at only 18.5%.
#FederalReserve #InterestRates #Economy #Inflation #MohamedElerian
https://www.businessinsider.com/fed-interest-rate-cuts-timing-summer-markets-economy-slowdown-inflation-2024-6
Business Insider /
npub1f2d…qkdq
2024-06-06 06:15:34
Author Public Key
npub1f2d73h739x6zdwdda2e3249qkyhs2s4m3endtjdjt8ty4k4j77vq3aqkdqPublished at
2024-06-06 06:15:34Event JSON
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"content": "Ahead of schedule: Why the Fed should cut rates in July, according to Mohamed El-Erian\n==========\n\nMohamed El-Erian believes the Fed should start cutting interest rates in July due to negative economic surprises, including disappointing retail sales and manufacturing prints. El-Erian argues that the economy is slowing faster than expected, and the Fed should not rely solely on past data. He suggests that the Fed should cut rates three times this year, but realistically expects no more than one or two cuts. El-Erian also advocates for raising the Fed's inflation target to 3% from the current 2% rate. However, the market currently predicts a policy pivot in September, and the odds of a summer rate cut stand at only 18.5%.\n\n#FederalReserve #InterestRates #Economy #Inflation #MohamedElerian\n\nhttps://www.businessinsider.com/fed-interest-rate-cuts-timing-summer-markets-economy-slowdown-inflation-2024-6",
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