El-Erian on Currency Volatility and Fed Credibility

The video discusses the impact of Brexit on FX markets, highlighting the fluidity of interest rates and the Fed's data dependency. It explores liquidity issues and changes in market structure, emphasizing the shrinking role of broker-dealers. The Fed's credibility is questioned due to inconsistent signals, and a call for a long-term vision is made. The effectiveness of central banks, particularly the Fed and the Bank of Japan, is analyzed, stressing the importance of maintaining credibility.

In what ways has the structure of the market changed over time?

What is the significance of credibility for the Fed in the current economic climate?