Mohamed El-Erian is chief economic adviser at Allianz and a very smart chap indeed
He currently sees a 60% probability of a fed funds rate hike in September. BUT ....The chance could rise as high as 80%: "What makes that probability go a lot higher a Friday report that has three things:
- Job creation in excess of 180,000
- Wage growth going up
- And no significant move in the participation rate that pushes the unemployment rate up"
If Friday's jobs report meets all three of those conditions, "the case for not hiking would weaken tremendously" El-Erian said.
El-Erian speaking with CNBC, more here
Mo money mo problems
