Allianz chief economic advisor Mohamed El-Erian warns the Federal Reserve faces a ‘lose-lose’ dilemma ahead of its interest rate decision. He explains how market expectations put pressure on borrowing costs and the economy.
Allianz chief economic advisor Mohamed El-Erian warns the Federal Reserve faces a ‘lose-lose’ dilemma on interest rates. He explains that with market expectations showing a ninety percent probability of a rate hike, the central bank risks a market sell-off if it does not hike, while further tightening will pressure interest-rate-sensitive sectors like housing and auto loans.
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