El-Erian: No Surprises in Yellen's Speech

The transcript discusses the potential for a September rate increase, noting that market expectations were previously too low. It highlights the influence of international factors on the US yield curve, particularly the impact of German economic data. The conversation shifts to the neutral rate of interest, which is lower than in the past due to various factors, and the need for other government agencies to fulfill their policy roles. Finally, the debate on whether the Fed should raise its inflation target is explored, with concerns about political interference and the limitations of monetary policy as the sole tool.

What factors are influencing the current expectations for a September rate increase?

What role do international influences play in the US yield curve according to the speaker?

How does the speaker describe the current state of the neutral rate of interest?

Why does the speaker believe the Fed's inflation target should not be raised?

What does the speaker suggest about the reliance on monetary policy?