5 May 2023
Just a few months ago, Mohamed El-Erian was decrying a “paradox of financial conditions” as he called them. Writing in the Financial Times, El-Erian was speaking for quite a lot of establishment types, Economists mostly, who were perplexed by the misbehavior across the markets. The Fed like the ECB was trying to fight inflation, yet that fight was allegedly being undone by falling interest rates.