E-Erian The Shrink: Fed and Markets Resume Their Unhealthy Co-Dependency

 

Bloomberg.com

3 hours ago

Fed and Markets Resume Their Unhealthy Co-Dependency - Bloomberg

Fed and Markets Resume Their Unhealthy Co-Dependency

Monetary policy is once again swamping factors like economic growth and geopolitics for traders, threatening financial stability.

December 21, 2023 at 3:30 AM PST

By Mohamed A. El-Erian

Mohamed A. El-Erian is a Bloomberg Opinion columnist. A former chief executive officer of Pimco, he is president of Queens’ College, Cambridge; chief economic adviser at Allianz SE; and chair of Gramercy Fund Management. He is author of “The Only Game in Town.”

Christmas came early for markets this year.

Photographer: Angela Weiss/AFP via Getty Images

Before it’s here, it’s on the Bloomberg Terminal

 LEARN MORE

The Federal Reserve was supposed to leave center stage by the end of the year and let other factors play the leading role in determining asset prices in the advanced world and beyond. Instead, it has written itself an encore act that’s full of confusion.