Mohamed El-Erian: I'm disappointed by what Fed Chair Powell did not cover in Jackson Hole

Monetary Policy & Inflation - The market has priced in an 85% chance of a September rate cut, with the remaining 15% split between no cut and a 50 basis points cut [3] - The speaker suggests the Fed is de facto running an inflation target around 2.5% to 3% due to structural changes and employment considerations [8][9] - The long end of the curve's muted reaction suggests recognition of fiscal dominance, with high deficits and debt impacting monetary policy [11][12] Fed's Actions & Communications - The speaker acknowledges the Fed's recognition of higher employment risks but criticizes the lack of clarity on post-September policy and structural changes' implications [3][4] - The speaker expresses disappointment that Jackson Hole address didn't cover long-term strategy issues and lessons learned [5][7] - The speaker points out the Fed's tendency to be data-dependent rather than strategic [8] Sovereign Wealth Fund & Government Intervention - The speaker expresses concern about the government taking stakes in businesses beyond Intel, worrying about the blurring of ownership and control [16] - The speaker warns against government influence on business decisions, emphasizing the importance of a dynamic, entrepreneurial private sector [17][19] Global Economic Interdependence - US long-end rates are more influential globally than other countries' rates are on the US, with a beta near one for the US impacting the rest of the world [13]