Fed Needs to Raise Threat of ‘Bad News’ Rate Cuts, El-Erian Says

The Federal Reserve needs to make it clear at its policy meeting this week that it may have to cut rates if there are continuing signs that the economy is slowing, according to Mohamed El-Erian.

For now, the Fed should postpone rate cuts while also avoiding raising inflation expectations, El-Erian, president of Queens’ College, Cambridge, told Bloomberg TV Wednesday.