Bloomberg, Released on 7/29/22
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.
Mohamed El-Erian is the Chief Economic Adviser of Allianz, a multinational financial services company. He is the former CEO and co-Chief Investment Officer of PIMCO, a global investment firm and one of the world’s largest bond funds in the world. Dr. El-Erian also served as a member of the faculty of Harvard Business School. Before joining PIMCO, Dr. El-Erian was a managing director at Salomon Smith Barney/Citigroup in London and before that, he spent 15 years at the International Monetary Fund in Washington, D.C. His latest book is The Only Game in Town: Central Banks, Instability, and Avoiding the Next Collapse.