El-Erian Says June Fed Rate Hike Still on the Table

The video discusses the current economic outlook, focusing on job creation and the potential for interest rate hikes in June and September. It highlights the mixed nature of recent job reports, with job creation exceeding the steady state but wage growth remaining sluggish. The discussion shifts to the FOMC's perspective on unemployment and wage dynamics, emphasizing structural issues in the labor market. The video concludes by stressing the need for pro-growth reforms from the administration and Congress to address these structural challenges.

What is the main reason the September rate hike is still considered possible?

• Wage growth is exceptionally high.

• Job creation is above the steady state.

• The unemployment rate is increasing.

• Inflation is under control.

What is a significant concern regarding the unemployment rate discussed in the FOMC debate?

• It is stable with no significant changes.

• It is increasing due to high job creation.

• It is increasing due to high participation rates.

• It is decreasing due to a lower participation rate.

What does the declining unemployment rate suggest about the labor market?

• There is full employment with no slack.

• There are structural impediments to growth.

• The labor market is expanding significantly.

• Wage growth is accelerating rapidly.

What sector is primarily responsible for the sluggish wage dynamics?

• The tradeable sector.

• The non-tradeable sector.

• The manufacturing sector.

• The agricultural sector.

Who is responsible for addressing the structural issues affecting wage growth?

• The labor unions.

• The private sector.

• The Federal Reserve.

• The administration and Congress.