Daily Traders Edge

Mohamed El-Erian: Fed hike definite by September, probably in July – CNBC

May 23
15:03 2016

Mohamed El-Erian said Monday the market is still underestimating the chances the Federal Reserve will raise interest rates this summer.

The Fed has become part of the problem and “shouldn’t be doing what they’re doing, but exiting is quite hard. Now, they have a small window — a small window — to start normalizing, and I think they intend to take advantage of it,” Allianz’s chief economic adviser told CNBC’s “Squawk Box.”

Minutes from the Fed’s April meeting revealed policymakers intend to raise interest rates as soon as June if second-quarter economic growth picks up, the labor market continues to improve and inflation remains on track to hit the Fed’s 2-percent target.

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