Central Banks
El-Erian Sees Two Fed Rate Cuts This Year Despite Strong Data
- Fed risks a mistake by being overly data dependent, he said
- Treasuries fall across curve after jobs report tops estimates
Mohamed Aly El-Erian
Photographer: Chris Ratcliffe/BloombergThis article is for subscribers only.
Mohamed El-Erian still expects Federal Reserve officials to cut interest rates twice this year, even as a blockbuster jobs report pushes traders to rethink the timing.
While rate reductions in the US may not come as early as some on Wall Street had forecast, the Fed is likely to look past signs of economic resilience and start easing its monetary policy, El-Erian, the president of Queens’ College, Cambridge and a Bloomberg Opinion columnist, said on Bloomberg Television.