Fed May Be 'Bullied' Into 50 BPS Cut In September, Says Mohamed El-Erian, As Global Markets Melt Down

The CME FedWatchTool now sees a 95.5% probability of a 50-basis-point reduction in the Fed funds target rate. This could be similar to what the Fed did in 2018's Q4 when stock market volatility forced it into a "policy U-turn," says El-Erian.