Investors' Shaky Bet on Fed Boosting Markets in 2024

Analysts and financial markets are optimistic about the global economy in 2024, buoyed by central banks' aggressive interest rate cuts and a resilient showing in 2023. However, Mohamed A. El-Erian warns that this optimism may be misplaced, as the global economy faces mounting challenges such as geopolitical tensions and the aftermath of recent conflicts. He suggests that central-bank policies alone may not be sufficient to generate the necessary growth momentum and calls for major economic-policy overhauls and international intervention to mitigate the threats posed by an increasingly fragile economic and geopolitical environment.