Posted 1/26/2024, 3:12:55 PM
El-Erian Cautions against Premature Celebration as Inflation Risks Lurk While Fed Walks Tightrope
- El-Erian says it's too soon to declare victory on inflation as economy moves into more challenging environment
- 3 risks could jeopardize continued soft landing supply chain issues, pressure on consumers, rockier path to lower inflation
- El-Erian reiterates call for Fed to wait to cut rates until June or July despite market pricing in cuts
- Says Fed forward guidance has lost power as expectations are all over the place
- Data showed Fed's preferred core PCE inflation measure cooled to 2.9% annually, while consumer spending grew for 2nd straight month