El-Erian: We got the Fed cut. “Beyond that, it’s a mess.”

Monetary Policy Outlook - The market initially reacted positively to the 25 basis points (0.25%) rate cut and the signal of two more cuts expected later in the year [1] - Economic projections of higher inflation and higher growth are inconsistent with the rate cuts [1] - The Fed is projected to miss its inflation target for seven consecutive years [2] Forward Guidance & Internal Disagreement - There is a large dispersion in interest rate expectations among Fed members, indicating a lack of clear forward guidance [2] - Despite only one dissenting vote, underlying issues suggest a lack of consensus and potential confusion within the Fed [2]