El-Erian Says Disappointing Wage Figure Cuts Chance of Fed Hike
- Results focus attention on need for structural reform, he says
- Be careful on disrupting trade ties, Allianz’s El-Erian warns
El-Erian: March Fed Hike Now Less Likely
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Mohamed El-Erian, Allianz SE’s chief economic adviser, said lackluster wage growth in the U.S. may prompt the Federal Reserve to pause before raising interest rates again, while adding pressure on lawmakers to make sure that more Americans benefit from economic expansion.
The figure on pay is “disappointing,” El-Erian said Friday in an interview on Bloomberg Television. “This will make the Fed less likely to hike in March,” he added. “It puts even more focus on structural measures to enhance wage growth.”