Fed Has Message Problem After Early Rate Pause Signals, El-Erian Says

 

• Central bank now in ‘smaller corner’ after rate speak pre-data
• Given stronger jobs result, Fed should hike in June, he says

The Federal Reserve shouldn’t have led investors to expect a pause in interest-rate hikes in June before officials saw last month’s jobs numbers, says Mohamed El-Erian. 

“People are now going to be scratching their head — why did they guide the market so strongly towards a skip ahead of this report and ahead of the next CPI,” the chief economic adviser at Allianz SE and a Bloomberg Opinion columnist told Bloomberg TV on Friday, following a stronger-than-expected May jobs release.

https://www.bloomberg.com/news/articles/2023-06-02/mohamed-el-erian-says-fed-has-message-problem-after-early-pause-signals