The market has been relatively calm since the Federal Reserve raised interest rates last week, but Allianz's chief economic adviser and PIMCO's former chief investment officer Mohammed El Erian warned that the market may be forcing central banks around the world to raise interest rates. As a background, after the Federal Reserve raised interest rates last week, the financial market quickly turned to more hawkish pricing. Currently, it even includes the possibility of raising interest rates 3 more times until mid-next year. Interest rate expectations of other major central banks, such as the Bank of England, also showed a similar direction, although the Bank of England was the only major central bank that did not raise interest rates in September. In a recently published review article, El-Erian explained what new issues he believes will arise if the Federal Reserve and other central banks continue to tighten monetary policy. He warned that if this more aggressive monetary policy path finally materializes, the market and economy may face unnecessary pressure.

Disclaimer:Webull uses external vendor Google Translation Service for news translations where we endeavour to ensure these are correct, however, we recommend that you please double-check this information accordingly. Webull is not responsible for translation errors or issues.