El-Erian Warns Emergency Fed Rate Cut Would Be a Mistake

Mohamed El-Erian, a Bloomberg Opinion contributor, says really bad technicals are being triggered which is causing the stock market selloff. El-Erian's opinions are his own.

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[VishayNirala]

Rate cuts should not happen right now as we need much more downfall, coz if it falls very bad then and then only there will be upward trend and will feel the boom again...

[SSModi]

Like how he can explain everything logically in sequence.

[C.P]

The FED isn’t gonna cut because the market dropped 12%

[mtw]

Powell says he will base his decision on data. 30% adjustment to jobs report. What data? Real inflation still high - my food costs still real high. No one is going to loan government monies at lower rates.

[LivingWithGout]

Debts, debts, and astronomical amount of debts. Margin calls!

[PD_]

Agree. Powell should raise rates, real inflation is way higher than fudged 3% CPI, financial assets way overvalued. But the Fed will stand pat until after the election, that is the safe politically acceptable move. I'm sure Powell already had a canned speech of mumbo-jumbo to give in September. Doing nothing does no harm except to freak out Wall Street pirates.

[weho_brian]

it depends, if you see a continued loss and downtown in stocks, then the fed has to intervene. But if stocks stabilize and the fed does a suprise cut, then it would cause another crash

[mgvable]

So I finally heard what Dimond Italians and Latinos been saying you lower rates we pulling cash out of banks. I DARE YOU

[wesosdequeso]

Welcome fellow bagholders! 😊 Who woulda tougth buying all time highs couldn't backfire anytime soon🎉

[MrKenng]

Emergency rate cut is needed. It is a must.

[HermanMunster-sqmu]

The Wiseman lives by his means but not if the crooked men raise and price gouge every food on earth

[hsinkai]

I haven’t learned El Erian said something meaningful except common sense.

[KrisToCool]

All I’ve heard from him for a year is the fed needs to cut and it would be a mistake to stay higher for longer. Now he doesn’t want a cut? I’m sorry but can someone fill the gap.

[Relaxlifeisshort]

He was originally telling them they should have cut earlier
Now he is saying it would be a mistake.
I think i will stop trusting his comments

[moon]

the dooms man. he shows up when things are bad and says "stuff"

[youtybebw]

I'm sorry but this guy gets too much attention, his comments are erelavent. The market will do it thing whatever happens, better for the fed to keep its power dry for real problems.