We've probably seen Jerome Powell's last cut as Fed chair, says Allianz's Mohamed El-Erian

Summary

Mohamed El-Erian discusses the latest jobs report, saying it is no drama and leaves the labor market fine but not great. He argues the Fed is likely to hold in January and may have already delivered its last cut under Chair Powell. He highlights affordability and productivity as key issues and says the 10-year Treasury remains rangebound, with next week's inflation print the critical catalyst.

• Jobs report was close to expectations and no drama, with labor market fine but not great.
• El-Erian sees employment increasingly decoupled from output; productivity gains raise questions about who benefits.
• Affordability is a real economic, political and social issue, tied to both prices and income.
• He expects the Fed to do nothing in January and says Powell may have delivered his last cut.
• The 10-year Treasury has been rangebound despite many macro headlines.
• Next Tuesday's inflation report is the key focus and could break the range.
• Labor force participation remains a concern; reskilling and retooling are deeper supply-side issues.