Allianz chief economic adviser: The Federal Reserve has a communication problem

According to Jinshi, Allianz Chief Economic Advisor El-Erian believes that there is a key evidence for the bond market's surge after the latest Fed meeting: the Fed has a communication problem. Nearly a week after they announced last week that they would remain on hold and released a forecast that the rate cut next year would exceed previous expectations, traders and Fed officials are still at odds on the policy path. El-Erian said that the whole point of the Fed's communication is to do two things: one is to be transparent; the other is to enhance the power of forward-looking policy guidance. However, on the contrary, the Fed's communication has confused people. This may really be a problem. He said that the recent repetition of dovish bets in the market and officials' counterattacks showed that the Fed made a mistake. In this case, it was the market, not the central bank, that was calling the shots.