Higher oil prices will push U.S. inflation rate to 3% this year, El-Erian says

Mohamed El-Erian warns higher prices will push inflation up in 2025, limiting the Federal Reserve's ability to cushion a soft U.S. labor market. The comment suggests reduced scope for rate easing or accommodation, raising the risk of a tighter policy backdrop for markets and risk assets.

Analysis

Mohamed El-Erian warns higher prices will push inflation up in 2025, limiting the Federal Reserve's ability to cushion a soft U.S. labor market. The comment suggests reduced scope for rate easing or accommodation, raising the risk of a tighter policy backdrop for markets and risk assets.