El-Erian Says Fed’s ‘Zip Code’ for Neutral Is 50 Basis-Points Higher

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Mohamed El-Erian, a Bloomberg Opinion contributor, says the “zip code” for the Federal Reserve to achieve its so-called neutral rate will be higher than this week’s 75-basis-point interest-rate increase achieved. “My own instinct is that the zip code for neutral is above where we are now — at least half a percentage point,” El-Erian says on “Bloomberg The Open.” El-Erian’s opinions are his own.

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