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Opinion
Mohamed A. El-Erian

Will More of the Same Last?

The U.S. Federal Reserve and European officials are confusing calm markets and high asset prices with smart economic and monetary policy.
Whatever we do, stay calm.

Whatever we do, stay calm.

Photographer: Andrew Harrer

Last week served as an important reminder that the more things seem to change, the more they stay the same. 

The first reminder came from the U.S. Federal Reserve when it removed the word “patient” from its forward guidance and opened the door for an interest-rate hike this summer. But it also accompanied this significant change with further "linguistic gymnastics" to counter any negative market reaction.