El-Erian Says Market Is Pricing In Too Many Fed Rate Cuts
- Traders currently see 100 basis points of cuts by end of 2024
- Fed Chair Powell to provide sense of policy path this Friday
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Traders are overplaying the prospects of an aggressive series of Federal Reserve interest-rate cuts before the end of the year, according to Mohamed El-Erian.
“It is problematic in my mind that the market is pricing in so many rate cuts right now,” El-Erian, the president of Queens’ College, Cambridge, told Bloomberg Television on Thursday. “The market is overdoing it.”