El-Erian: Europe Has Huge Influence on U.S. Yield Curve

The video discusses the Federal Reserve's control over the yield curve, highlighting its influence on short-term maturities while noting Europe's impact on long-term maturities. It addresses the predictability of the Fed's actions and the skepticism surrounding its ability to tackle global economic challenges. The discussion also covers trade tensions and their implications for economic growth, emphasizing the limitations of monetary policy in addressing these issues.

What factors contribute to the Fed's control over the yield curve?

How does the influence of Europe affect the US yield curve?

What is the significance of the 'wall of skepticism' regarding the Fed's actions?

In what ways do trade tensions impact the Fed's ability to influence the economy?

What are the potential unintended consequences of loosening monetary policy further?