El-Erian: Market's 'Outsized Reaction' to Inflation Data Came After Getting 'Carried Away'

What You Need To Know

• Hotter-than-expected inflation data served as a "wake-up call" for markets overly optimistic about Federal Reserve interest rate cuts.
• Mohamed El-Erian predicts no more than three Fed cuts this year, with the cycle possibly starting in June, contrary to market expectations of earlier and more cuts.
• The adjustment of market expectations, or a Fed mistake, could threaten what El-Erian calls an exceptionally strong economy.