The possibility of the Federal Reserve cutting interest rates in September is threatened by an inflationary shock after the US election, according to leading economist El-Erian. "There are two factors that complicate the outlook for a rate cut in September," El-Erian said on Friday. One is that the economic data may be bad, and the other is political. How worried is the Fed about an inflationary shock caused by policy factors after the election? El-Erian believes that there will not be a situation in the United States where the former British prime minister Truss has turned the market upside down because of the budget plan. He expects the Fed's "biggest concern" is having to reverse rate cuts and resume interest rate hikes as inflation accelerates again. Mr. El-Erian added that the chances of the Fed raising rates next year were low, but it could not be ruled out entirely as a result of major external shocks or "fundamental changes in policy in other areas such as fiscal and trade".