El-Erian: Fed Needs to Start Backing Off


Mohamed El-Erian, CEO of bond-investing giant Pimco, told CNBC that the Federal Reserve has done its job and now needs to let fiscal policymakers take over. Comparing the U.S. economy to a car, El-Erian said the Fed needs to let somebody else do the driving.

El-Erian: "You don't want the Fed to be a direct player in so many markets, because by definition their incentives are noncommercial. So it's in the interest of the market to have the Fed gradually—and the critical word is 'gradually'—step back to the sideline and act as a referee, not as a referee and a player."

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