El-Erian: Fed's Unhealthy Market Dependence Threatens Stability
• Mohamed El-Erian said the Fed has an unhealthy co-dependence with markets that threatens financial stability
• He blasted Fed Chair Jerome Powell for remarks that fueled market expectations of rate cuts
• El-Erian argued the Fed should've stepped back as policy neared peak restrictiveness
• Instead, the Fed cemented its leading role in markets by spurring a Santa Claus rally
• Prolonging this unhealthy Fed-market co-dependency risks economic well-being and financial stability