Reported 7 months ago
Allianz Chief Economic Advisor Mohamed El-Erian discusses concerns over the US labor market, warning that small businesses and households have already lost their buffers due to eroded pandemic savings, high debt levels, and increasing delinquencies. El-Erian emphasizes the potential risks of the Federal Reserve being too late in cutting rates, expressing a 35% chance of such a scenario. Despite the Fed's decision to maintain interest rates, El-Erian highlights the economic impact and the importance of timely action in response to evolving economic data.
Source: YAHOO