Mohamed A. El-Erian is a Bloomberg Opinion columnist. A former chief executive officer of Pimco, he is president of Queens’ College, Cambridge; chief economic adviser at Allianz SE; and chair of Gramercy Fund Management. He is author of “The Only Game in Town.”
They are relatively well-placed to handle the immediate uptick in the geopolitical risk premium. They are not well-placed to navigate further escalations that would involve more parties in a more significant manner.
The Fed chair’s off-the-cuff comment about a March rate cut being unlikely restricted the central bank’s policy options and undermined its communication.
