The Fed is trapped in a deep hole and will lose more credibility no matter what it does next

"Resuming 50-basis-point increases and essentially negating much of the previous forward policy guidance would constitute yet another significant hit to the damaged standing of the Fed," he wrote. "But not responding to a set of unfavorable inflation data surprises is also bad for its credibility."

- rest at The Fed's Trapped in a Hole and Will Lose Credibility: Mohamed El-Erian (businessinsider.com)