PIMCO chief executive Mohamed El-Erian said the Federal Reserve should hold back on unloading QE3, as he believes further stimulus will prove futile in attempting to reduce inflation.
El-Erian, also co-CIO at the world's biggest bond house and a well-known financial commentator, told Bloomberg the Federal Reserve does not have enough policy instruments to deal with the challenges facing the economy. "I do not think that on its own QE3 can produce the outcomes we want, which is for higher job creation and contained inflation," said El-Erian. "The US has used rates, implemented QE and now we are seeing the Federal Reserve trying to push investors to take on more risk." El-Erian added with investors perplexed by so much uncertainty related to the eurozone debt cris...
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