{"id":21865,"date":"2024-05-17T19:23:54","date_gmt":"2024-05-17T19:23:54","guid":{"rendered":"https:\/\/www.thinkadvisor.com\/2024\/05\/17\/el-erian-says-feds-high-rates-are-at-odds-with-market\/"},"modified":"2024-05-17T19:23:54","modified_gmt":"2024-05-17T19:23:54","slug":"el-erian-says-feds-high-rates-are-at-odds-with-market","status":"publish","type":"post","link":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/2024\/05\/17\/el-erian-says-feds-high-rates-are-at-odds-with-market\/","title":{"rendered":"El-Erian Says Fed&#8217;s High Rates Are at Odds With Market"},"content":{"rendered":"<div class=\"media_block\"><a href=\"https:\/\/feeds.feedblitz.com\/-\/896797991\/0\/thinkadvisor\/\"><img decoding=\"async\" src=\"https:\/\/images.thinkadvisor.com\/contrib\/content\/uploads\/sites\/415\/2023\/10\/Mohamed_El-Erian_2023_BB_640x640.jpg\" class=\"media_thumbnail\"><\/a><\/div>\n<div><img decoding=\"async\" src=\"https:\/\/images.thinkadvisor.com\/contrib\/content\/uploads\/sites\/415\/2023\/10\/Mohamed_El-Erian_2023_BB_640x640.jpg\" class=\"ff-og-image-inserted\"><\/div>\n<p id=\"first-para\">The Federal Reserve\u2019s delay of interest-rate cuts in a bid to temper inflation runs the risk of falling behind the curve, according to Mohamed El-Erian.<\/p>\n<p>\u201cThe Fed pivoted on the basis of data. It was the opposite of the pivot that they did in December \u2014 now they have to do a U-turn,\u201d &nbsp;El-Erian, the president of Queens\u2019 College, Cambridge and a Bloomberg Opinion columnist, told Bloomberg Television on Friday.<\/p>\n<p>\u201cAs they are doing the U-turn and stay higher for longer, the market is going the other way,\u201d he said.<\/p>\n<p>\u201cThe Fed is going to have to pivot \u2014 not on the basis of inflation numbers, but the basis of the real economy,\u201d he added.<\/p>\n<p>Like other market watchers, El-Erian has previously raised the possibility that the U.S. central bank should look beyond its 2% inflation target in a new era of structurally higher pressures on price growth.<\/p>\n<p>\u201cIs the inflation target the right target? We all talk about wanting to go back to 2%,\u201d El-Erian said. \u201cTwo percent is totally arbitrary. If we are pursuing the wrong inflation target, the risk of a mistake \u2014 that mistake would mean sacrificing growth unnecessarily \u2014 the risk of a mistake is high.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The Federal Reserve\u2019s delay of interest-rate cuts in a bid to temper inflation runs the risk of falling behind the curve, according to Mohamed El-Erian. \u201cThe Fed pivoted on the basis of data. It&#46;&#46;&#46;<\/p>\n","protected":false},"author":1,"featured_media":21866,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[],"tags":[1],"jetpack_featured_media_url":"https:\/\/blog.lifeinsurance-orleans.ca\/wp-content\/uploads\/2024\/05\/el-erian-says-feds-high-rates-are-at-odds-with-market.jpg","_links":{"self":[{"href":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/wp-json\/wp\/v2\/posts\/21865"}],"collection":[{"href":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/wp-json\/wp\/v2\/comments?post=21865"}],"version-history":[{"count":0,"href":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/wp-json\/wp\/v2\/posts\/21865\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/wp-json\/wp\/v2\/media\/21866"}],"wp:attachment":[{"href":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/wp-json\/wp\/v2\/media?parent=21865"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/wp-json\/wp\/v2\/categories?post=21865"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/wp-json\/wp\/v2\/tags?post=21865"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}