|Matthew J. Belvedere – CNBC
The Fed Isn’t Even Close to Being the Biggest Wild Card for Markets
Allianz’s chief economic advisor, Mohamed El-Erian, argues that “The biggest wild card is the politics. It’s really important here, Europe, Middle East, North Korea. There’s a lot of moving pieces,” he said in an interview. El-Erian said he would advise the Fed to hold off on shrinking its balance sheet until rates are lifted back to more historically normal levels. He also pointed out that the Fed “will adapt” to evolving conditions and stave off any profound financial market volatility, but the same is unlikely to be true of politics.