El-Erian: Jobs Report Puts Fed in Tricky Situation

The transcript discusses the mixed job report, highlighting concerns about wage growth and labor market slack. It examines market reactions, noting changes in yields and the dollar. The Federal Reserve's dilemma over low interest rates and potential collateral damage is explored, with a focus on financial stability risks. The discussion concludes with speculation on the Fed's future actions regarding rate hikes.

In what ways could excessive risk-taking by non-banks impact the financial system?

What factors might influence the Federal Reserve's decision to raise interest rates in September?