Mohamed El-Erian: Preferred the Fed didn't hike rates at latest meeting

• El-Erian believes the Fed should not have hiked rates, despite market expectations, and that a 25 bps hike doesn't solve the inflation picture.
• He notes that US Treasury yields and inflation worries haven't moved significantly, attributing recent yield surges to an imbalance between increasing demand for bond financing and fewer reliable international buyers.
• El-Erian identifies three economic paths, with the current 'robust' consensus becoming unstable. He anticipates more volatility and dispersion due to structural uncertainty, cautioning that further Fed hikes would be 'really bad news' for the economy.

Mohamed El-Erian, Allianz Chief Economic Advisor, expresses disagreement with the Fed's latest rate hike, stating he would have preferred no hike at all. He highlights structural uncertainty in the economy, an imbalance in Treasury demand, and the potential for increased volatility and dispersion. El-Erian warns that further rate hikes could be detrimental to the economy.