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Market Confusion

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The Fed's Communication Issues and Market Bullying Hindering Inflation Battle, Says El-Erian and Nomura

Originally Published 2 years ago — by Business Insider

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Source: Business Insider

Economist Mohamed El-Erian criticized the US Federal Reserve for its poor communication, stating that it confuses people and allows the markets to lead the central bank. El-Erian's comments came after the Fed signaled rate cuts for next year, causing a market rally. However, several Fed officials have since stated that the markets are getting ahead of themselves. El-Erian believes that the Fed's communication should be transparent and provide clear forward policy guidance, but instead, it is causing confusion.