Asks how dovish Fed comments net out given conflicted committee and incomplete economic data
Mike
Mohamed El-Erian
Outcome will be uncertain, controversial, messy and reflect a divided Fed
Questions if market behavior between now and December meeting could be deciding factor for Fed cut
Mike
Mohamed El-Erian
Fed has basic problem in AI-led economy with GDP growth decoupling from employment
Suggests weak labor conditions should make cut more likely since Fed targets employment not GDP
Mike
Mohamed El-Erian
Would cut based on strategic view of economy not current state, citing AI-driven productivity gains