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US Federal Reserve Chair Jerome Powell
US Federal Reserve Chair Jerome Powell attends a press conference in Washington, DC, on March 22, 2023.

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  • Recession odds are below 50%, but a Fed policy mistake could worsen them, Mohamed El-Erian told CNBC.
  • If they keep rates longer than necessary, such as cutting after June, the chances of a recession rise.
  • Tuesday's CPI data was a wake-up call for investors who have gotten carried away, he said.

Though economic strength has kept a US recession at bay, a downturn could still happen if the Federal Reserve's constrictive monetary policy stretches on for longer than necessary, economist Mohamed El-Erian told CNBC.

Tags
economy, Markets, inflation-federal-reserve, cpi-data, recession-risks, fed-rate-cuts, us-economy-and-markets, mohamed-el-erian, recession-outlook, us-economy-outlook
Source
The risk of a recession could flare up if the Fed waits too long to cut rates, …