El-Erian: Fed Should Be 'Open Minded' About Rate Hikes

The video discusses the timing and approach to hiking interest rates, emphasizing the importance of starting tapering early and being open-minded about rate increases. It highlights the difference between tapering and braking, and stresses the need to monitor economic reactions before specifying rate hikes. The speaker advises against providing specific guidance on timing, given the unprecedented economic conditions.

What factors should be considered before increasing interest rates?

What is the difference between tapering and increasing rates?

Why is it important to see how the economy reacts to tapering?

What does the speaker imply about the timing of rate increases?

What does the speaker mean by being 'really careful in terms of policy response'?