Reported 2 months ago
Mohamed El-Erian, Allianz's Chief Economic Advisor, warns that the Federal Reserve is lagging in cutting interest rates, suggesting that a premature cut could risk a recession by inducing consumer anxiety. He emphasizes that an intermeeting rate cut would indicate 'total panic' within the market, as economic slowdown is occurring faster than anticipated. El-Erian's insights reflect concerns about the potential for a negative feedback loop within the economy.
Source: YAHOO