(Bloomberg) — Mohamed El-Erian emphasizes the importance of the Federal Reserve refocusing on combating inflation following a strong September jobs report that highlighted the ongoing threat of rising prices.
His remarks were prompted by the release of Friday’s data, which exceeded expectations and led to a surge in US stocks and bond yields. Nonfarm payrolls increased by 254,000 in September, marking the highest gain in half a year.
“These numbers indicate not just a stable labor market but potentially a robust one as we near the end of an economic cycle,” stated El-Erian, who serves as president of Queens’ College, Cambridge, during an interview with Bloomberg Television on Friday.
He urged the Fed to resist market pressures to solely focus on maximum employment and instead prioritize addressing inflation concerns more aggressively.
Following the report, investors quickly adjusted their expectations for significant Fed policy changes in November and December. The data…
2024-10-04 10:22:49
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