El-Erian spoke in an interview with Bloomberg (gated) Television on Thursday:
- “It is problematic in my mind that the market is pricing in so many rate cuts right now”
- “The market is overdoing it”
- “There’s this notion of a hard landing policy response to achieve a soft landing, that has got to be reconciled one way or another”
- “The market’s going to have to adjust at some point”
El-Erian is forecasting 75 basis points of interest rate cuts by the end of this year.
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Meanwhile, the long-awaited day is upon us! Federal Reserve Chair Powell speaks at 10am US Eastern time at the Kansas City Fed’s annual central bank symposium taking place in Jackson Hole, Wyoming.
This article was written by Eamonn Sheridan at www.forexlive.com. Source