El-Erian: Fed Has No Choice But to Raise by Half-Point

The transcript discusses insights from corporate America regarding economic conditions, highlighting ongoing supply issues and emerging demand concerns. It suggests that these factors could lead to stagflation, posing significant challenges for the Federal Reserve's policy decisions. The Fed is expected to raise interest rates by 50 basis points due to high employment costs, but long-term decisions are becoming increasingly difficult due to timing and external factors.

What short-term decision does the Federal Reserve have to make?

Why is the longer-term decision for the Federal Reserve becoming harder?