Latest news with #MohamedElErian
The National
an hour ago
- Business
- The National
Egyptian-American economist Mohamed El-Erian calls for Fed chairman's resignation
Egyptian-American economist Mohamed El-Erian broke ranks on Tuesday by suggesting Jerome Powell should resign as the chairman of the US Federal Reserve. 'By staying in office, is Powell defending independence or is he exposing it to greater threats?' he said, when asked by The National during a conference co-hosted by the World Bank and Centre for Global Development in Washington. 'If you see what has happened over the past few weeks is that the attacks have evolved from simply being attacks on him personally to being attacks on the institution.' The White House has increased its pressure on the Fed to cut interest rates this year, with Mr Trump calling for low rates to help service the nation's debt, a concept known as fiscal dominance. The Fed has paused its interest rate cuts after reducing policy in the final months of 2024, owing to uncertainty surrounding President Donald Trump's tariffs policies. The extended pause has drawn the increasing ire of the White House. The administration's latest line of attack has been on continuing renovations at the Fed's headquarters in Washington, where costs have risen to $2.5 billion. Trump officials have accused Mr Powell of grossly mismanaging the Fed, citing the renovation, which some see as grounds for a sacking. Mr Powell has linked cost overruns to unforeseen conditions such as more asbestos than anticipated, contamination in the soil and a higher-than-expected water table. 'This tension between the President and the chairman of the Fed, if it continues, it will suck in more elements of the Fed,' Mr El-Erian said. Mr Powell has said that he intends to serve out his term as chairman, which expires in May 2026, and that Mr Trump has no legal authority to fire him. Tensions simmered last week following reports that Mr Trump indicated to Republicans in the House of Representatives that he was open to firing Mr Powell. While Mr Trump confirmed he brought up the idea, he said it was 'highly unlikely' that he will sack the chairman. The reports led to a brief spike in long-term yields and a weakening in the US dollar before they pared back some losses after Mr Trump's comments. Those reported as possible replacements for the Fed chairman include National Economic Council head Kevin Hassett, former Fed governor Kevin Warsh, Treasury Secretary Scott Bessent and current Fed Governor Christopher Waller. Mr El-Erian said the reported list of candidates would help calm market jitters. 'It's a very controversial argument, but it is underpinned by the need to maintain the critical importance of central banking,' he said. In an interview with Fox Business earlier on Tuesday, Mr Bessent said Mr Powell should not resign. 'There's nothing that tells me that he should step down right now,' he said. 'His term ends in May. If he wants to see that through, I think he should. If he wants to leave early, I think he should.' Mr Bessent on Monday had called for the 'entire review' of the Federal Reserve system's non-monetary policy operations. He also called for a review into the Fed's building renovations.
The National
3 days ago
- Business
- The National
Egyptian-American economist vying to be next Chancellor of Cambridge
Dr Mohamed El-Erian describes the University of Cambridge as his 'happy place'. The Egyptian-American economist, known to millions as a globe-trotting economist who has shaped thinking about historic twists in the world's fortunes, graduated from Queens' College in 1980. After a successful career – working at the International Monetary Fund, as a bond trader, adviser to US President Barack Obama, author and columnist – he returned to his alma mater as president in 2020. He's genuinely one of the kindest people that I've ever met Georgia Box He now hopes to be elected chancellor of the university, an 800-year-old role that has been held by princes and prime ministers. In a ballot of alumni, he is pitted against two lords, a TV presenter, an anti-Brexit campaigner and several academics and business leaders, with the result due to announced by July 23. Dr El-Erian, who was named in the Top 100 Global Thinkers by Foreign Policy magazine and made Worth magazine's list of 100 Most Powerful People in Finance, he has endorsements from former UK prime minister Gordon Brown, Google DeepMind co-founder Demis Hassabis and businesswoman Arianna Huffington. He was born in New York to Egyptian parents, and his father worked as an ambassador, judge and at the United Nations. He grew up in the US and Egypt, as well as being educated at boarding school in England. He won the economics category of the Great Arab Minds awards in 2023. He has run a vigourous social media campaign, mixing his serious message about the transformation he believes is needed at Cambridge with light-hearted interviews gently ribbing rival university Oxford. Dr El-Erian has been seen wearing a Queens football shirt and also gave a tour of his home office which features a giant poster of Cambridge. 'I am happiest here, just ask my daughters,' he says in that video. He sets out his proposals for how the chancellor's role should change: making it less ceremonial and more practical, ensuring the university is on a sound financial footing and open to the international community. As co-chairman of the Cambridge Capital Campaign he has helped bring in £2.2 billion of investment to Queens. 'Cambridge must redouble its efforts to attract funding and donations,' he said in his campaign statement. 'I've seen first-hand how innovation and philanthropy help to support vital research, expand opportunities, and better secure our future. 'If elected chancellor, I'll intensify these efforts by helping to tap into global philanthropic opportunities and to attract the investment Cambridge needs.' He has also spoken about the need to understand how Cambridge can give students a foundation for life. 'Throughout my time here it's been about identifying what the problem is and fix[ing] it,' he said in a video discussing the need for flexible scholarships. In footage filmed on the grassy bank of the River Cam as punts glide past, Georgia Box, an associate at Deutsche Bank, was interviewed about why she was supporting Dr El-Erian. He explained how she was under pressure to start earning, using her new degree, but not continue her studies at a higher level. He helped to design a scholarship that would not just pay for fees and living accommodation, but also 'something extra'. Ms Box said: 'He cares a lot about each and every student. He's genuinely one of the kindest people that I've ever met. I think he's just an excellent leader and I can't think of anyone else that's better for the job.' In her submission to be chancellor, broadcaster Sandi Toksvig points out: 'The first known chancellor of Cambridge was Richard of Wetheringsett who served sometime between 1215 and 1232. After that we have had a plethora of other Richards, many Johns and an awful lot of Stephens. 'After 800 years I wonder if it isn't time for a change,' she asks. Dr El-Erian will be hoping to add the name Mohamed to that list.
Yahoo
14-07-2025
- Business
- Yahoo
US markets are acting like a developing nation: Mohamed El-Erian
Mohamed El-Erian, the president of Queens' College, Cambridge, argues that the US markets are starting to behave like those of developing countries, with common correlations starting to break down. Hear more of what he has to say in the video above. Be sure to check out the full interview with Mohamed El-Erian. To watch more expert insights and analysis on the latest market action, check out more Morning Brief here. And I thought the other thing that that was very interesting that you wrote in your piece is that the US is almost behaving like a developing nation rather than it sort of um global dominant status. What do you mean by that and what are the implications of that? So we're seeing core market correlations that normally are more common to developing countries than the US. For example, the currency weakens even though yields are going up. That shouldn't happen. Um the negative correlations between bonds and equities has broken down. So you're starting to see things and you're starting to hear narratives that are more common in developing countries than in the US. And I think that that's partially because the US is trying to remake its domestic system. There's a real question mark as to whether this is a Reagan moment in which the US changes things with a view to a better outcome or is this a Jimmy Carter moment in which the US ends up in stagflation and ultimately recession? Which do you think it is, Muhammad, or if you if we don't yet know, how will we start to know? So first, let me tell you the market is all over the place on this. We started the year with an 80% probability that this was a Reagan moment. By the beginning of April, we were below 50% and now we're somewhere around 70%. So we have fluctuated a lot. And that is unusual for the US with its mature institutions and big diversified economy. I think it's a 50/50. I don't think we know. I think it will depend on how other countries react as well. So it's a 50/50, but the marketplace right now seems more comfortable than I would be with where we're going. Sign in to access your portfolio
Yahoo
03-07-2025
- Business
- Yahoo
UK borrowing costs fall as investors' nerves ease
The cost of government borrowing has fallen in early trade, partly reversing a surge prompted by the chancellor's emotional appearance in the Commons the previous day. The yield on UK 10-year bonds fell to 4.53%, down from 4.61% at Wednesday's close - as markets reacted to the prime minister's comments that he worked "in lockstep" with Rachel Reeves. The pound, which also fell on Wednesday, recovered some ground to $1.3668, although it has not regained all the ground it lost. One analyst told the BBC financial markets seemed to be backing the chancellor, afraid that if she left her job then fiscal discipline would disappear. Will Walker Arnott, head of private clients at the bank Charles Stanley, told the Today programme it seemed like a "rare example of financial markets actually enhancing the career prospects of a politician". "I think the markets are concerned that if the chancellor goes then any fiscal discipline would follow her out the door and that would mean bigger deficits." Mohamed El-Erian, president of Queens' College, Cambridge, and chief economic adviser at Allianz, warned that markets were likely to remain on edge. "The minute you put a risk premium in the marketplace, it's very hard to take out," he told the Today programme. "I suspect that we will see some moderation, but we will not go back to where we were 24 hours ago." Borrowing costs jump and pound falls on Chancellor's tears Reeves was at Prime Minister's Questions on Wednesday following the government's U-turn on plans to cut billions of pounds through welfare reforms when she became emotional and started crying. The reversal of welfare reforms puts an almost £5bn black hole in Reeves's financial plans. The rise in borrowing costs was initially sparked by the feeling the chancellor might step down, seeming to indicate that the markets are supportive of her. A Treasury spokesperson later said the chancellor was upset due to a "personal matter". And on Wednesday evening Prime Minister Sir Kier Starmer backed Reeves, telling BBC Radio 4's Political Thinking with Nick Robinson he worked "in lockstep" with Reeves and she was "doing an excellent job as chancellor". Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
BBC News
03-07-2025
- Business
- BBC News
UK borrowing costs fall as PM backs chancellor
The cost of government borrowing has fallen in early trade on Thursday, partly reversing a surge prompted by the chancellor's emotional appearance in the Commons the previous yield on UK 10-year bonds fell to 4.53%, down from 4.61% at Wednesday's close - as markets reacted to the prime minister's comments that he worked "in lockstep" with Rachel pound, which also fell on Wednesday, recovered some ground to $1.3668, although it has not regained all the ground it lost. One analyst told the BBC financial markets seemed to be backing the chancellor, afraid that if she left her job then fiscal discipline would disappear. Will Walker Arnott, head of private clients at the bank Charles Stanley, told the Today programme it seemed like a "rare example of financial markets actually enhancing the career prospects of a politician"."I think the markets are concerned that if the chancellor goes then any fiscal discipline would follow her out the door and that would mean bigger deficits."Mohamed El-Erian, president of Queens' College, Cambridge, and chief economic adviser at Allianz, warned that markets were likely to remain on edge."The minute you put a risk premium in the marketplace, it's very hard to take out," he told the Today programme."I suspect that we will see some moderation, but we will not go back to where we were 24 hours ago."
