Mohamed El-Erian, Chief Economic Advisor at Allianz, has criticized the Federal Reserve for not reducing interest rates in July, warning that the market’s expectation of a significant rate cut in the next year is unrealistic. He argues that the Fed should have acted in July and that the lack of clarity regarding future rate reductions is causing market uncertainty. El-Erian expects a 25 basis point cut in September and a total of 150 basis points in the next 12 months.