Economy is slowing much faster than the Fed expected: Mohamed El-ErianDisappointing economic indicators are taking hold as markets ready for an expected rate cut this July, and one prominent economist and educator warned there’s more of a slowdown than previously forecasted.
"So far, we've had disappointing retail sales. We've had disappointing PMI manufacturing numbers. The ISM numbers were disappointing. [Tuesday's] job vacancies were considerably below expectations," Mohamed El-Erian, president of Queens' College at Cambridge University, said on "The Claman Countdown." "Citi has this ‘index of surprises,’ and we've had nothing but negative surprises."
"And all that is saying to us is that the economy is slowing much faster than most people expected, including the Fed," he continued.
According to the ADP National Employment Report released Wednesday morning, hiring by U.S. companies slowed more than expected in May, pointing to a labor market that is continuing to cool in the face of higher interest rates.
Companies added 152,000 jobs last month, below both the 175,000 increase predicted by LSEG economists and the downwardly revised April gain of 188,000. It marked the worst month for job creation since January................
..................El-Erian said he believes there’s still a 35% chance that the U.S. economy will enter a recession.
"We entered 2023 with people saying a 100% probability of recession, and the U.S. economy surprises on the upside," he pointed out. "Unfortunately, we entered this year a little bit too rosy, and now the economy is slowing."
https://www.foxbusiness.com/media/economy-slowing-much-faster-than-fed-expected-mohamed-el-erian
