We normally think if you're going to lend someone money, you should get some reward for doing this. In Europe, it's a tax! Mohamed El-Erian More Quotes by Mohamed El-Erian More Quotes From Mohamed El-Erian After the Brexit referendum, the UK has to urgently get its political act together, 'Plan B' depends on the politicians in London and across the Channel, but so far they have not stepped up to their economic governance responsibilities. Mohamed El-Erian top-news Notwithstanding the headwinds from abroad, the Fed is likely to hike this year at least once, and possibly twice. Mohamed El-Erian business We should expect the improbable to increase, the rise of anti-establishment parties is a product of low growth, rising inequality, a political system that's failed to deliver and an over-reliance on central banks. Mohamed El-Erian business I doubt we will see the four rate hikes signaled a few weeks ago by Fed officials, two hikes are likely, if not less. Mohamed El-Erian company-news Countries are pursuing their domestic objectives almost regardless of the international consequences, you see this most clearly on the currency front, where with the exception of the United States, the vast majority of countries are hoping to weaken their currencies. I would put the Bank of Japan action in that category. Mohamed El-Erian company-news Countries are pursuing their domestic objectives almost regardless of the international consequences, you see this most clearly on the currency front, where with the exception of the United States, the vast majority of countries hopes to weaken their currencies. I would put the Bank of Japan action in that category. Mohamed El-Erian top-news We are going to see the Federal Reserve continue to try to very carefully ease its foot off the accelerator while the other three systemically important central banks - the ECB (European Central Bank), BOJ, PBOC (People's Bank of China) - are going to be pressing harder on the stimulus accelerator. Mohamed El-Erian top-news Recent financial market turmoil means that the Fed definitely will not move in January with another hike, but it does not, at least as yet, remove the likelihood of further hikes in the course of 2016. Mohamed El-Erian company-news Look at sectors that have been completely unhinged. Emerging markets have been completely unhinged, they’re broken in terms of markets. Mohamed El-Erian money I suspect if we talk in January, we'll find that the ECB has pressed even harder on the stimulus accelerator, while the Fed has taken its foot a little bit off the accelerator. Mohamed El-Erian company-news He's right ... the balance of risk is starting to tilt because policymakers are not responding. Mohamed El-Erian company-news The Fed's decision to hold off on a rate hike reflects the extent to which it is worried about further destabilization in global financial condition spilling back and undermining the U.S. recovery, they are reluctant to add to international financial fragility - and they wish to limit adverse spillback to the U.S. economy. Mohamed El-Erian company-news And its models haven't done a great job of predicting economic developments, and understandably so given all the structural changes here and abroad. Mohamed El-Erian company-news There will be lots of political noise and posturing. But, when push comes to shove, Brexit will be avoided, it would be costly for all involved, and especially the UK. Mohamed El-Erian company-news This is a good time for investors. This is an easier time, ironically, than it has been for the last few months because value is being created. Mohamed El-Erian company-news It's a really tough policy call, not only do domestic indicators conflict with external ones, but the Fed itself has only a partial handle on the economy - and inevitably so. This is a time of significant policy uncertainty, particularly given that what's on the table is a policy regime change - namely the first interest rate hike in over nine years. Mohamed El-Erian company-news I would have hiked earlier and I would have gotten off zero earlier, but it's easier to say with hindsight, we know that there was a moment when domestic data was relatively strong and international data was okay. Now, the international data is really scary, and therefore the Fed has lost the opportunity when it had some alignment. Mohamed El-Erian business While job creation continues at a solid pace, wage growth remains frustratingly tepid, the Federal Reserve will now wait for the next report to decide on a September rate hike. Mohamed El-Erian company-news I am not a buyer...that this is a crash. I think China has the ability to control a soft landing, but China is no longer a locomotive of global growth, and that has implications for companies and it has implications for commodities markets. Mohamed El-Erian company-news We should welcome and be relieved in relative terms, but markets should be prepared for...an uncertain and messy implementation process. Mohamed El-Erian company-news
