Fed risks losing control of messaging on rates: El-Erian
Wed, Dec 6, 2023 10:49 AM

Fed risks losing control of messaging on rates: El-Erian

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The US Federal Reserve is losing control of its messaging on interest rates, but financial markets are wrong to expect imminent cuts, Allianz chief economic adviser Mohamed El-Erian said.El-Erian said the Fed may well tolerate higher inflation instead of pushing the economy into recession to hit its 2% target. But he also said investors are over-reacting by pricing in sharp rate cuts.

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