El-Erian, Crescenzi Paint Picture of Investors Betting on Fed

Markets jump on confidence in central bank, Pimco manager says
El-Erian sees investors drawing conclusions before Fed decides

Mohamed El-Erian, a Bloomberg Opinion contributor, says the “Zip code” for the Federal Reserve to achieve its so-called neutral rate will be higher than this week’s 75-basis-point interest-rate increase achieved. “My own instinct is that the Zip code for neutral is above where we are now -- at least half a percentage point,” El-Erian says on “Bloomberg The Open.” El-Erian’s opinions are his own.Source: Bloomberg

Provide news feedback or report an error

Confidential tip?

Send a tip to our reporters

Site feedback:

Take our Survey

By John McCorry

July 29, 2022 at 4:17 PM UTC

This article is for subscribers only.

Investors are in a gambling mood when it comes to the Federal Reserve.

That’s the conclusion one could reach after listening to veteran strategists, Bloomberg Opinion columnist Mohamed El-Erian and Pacific Investment Management Co.’s Anthony Crescenzi, explain market rallies in a week where the Fed raised overnight lending rates and the US economy signaled a recession.