El-Erian said the Fed may well tolerate higher inflation instead of pushing the economy into recession to hit its 2% target. But he also said investors are over-reacting by pricing in sharp rate cuts. Market prices have swung wildly in recent days as traders bet on a drop in borrowing costs amid signs that inflation is falling and comments from Fed Chair Jerome Powell that the actions taken so far have pushed policy “well into restrictive territory.”
ETMarkets Smart Talk: Sectors to avoid in 2025: Overvalued plays and low growth visibility stocks
The market has digested the continuing geo-political concerns and with the new US president taking an anti-war stance, there are high chances that various regional
December 23, 2024