The Federal Reserve is being “held hostage by markets” and will be forced to make two interest rate cuts before the end of the year, according to Mohamed El-Erian, the veteran bond investor.
In an exclusive interview with Financial News, the chief economic adviser to Allianz, the German insurer, said the Fed will “have no choice” but to drop rates to as low as 1.75% over the next five months to alleviate fears that trade tensions and slowing global growth will hurt the US economy.
