“Ben S. Bernanke probably won’t provide specific plans for further monetary action at the Federal Reserve Bank of Kansas City’s annual Jackson Hole symposium this week, according to Pacific Investment Management Co. Chief Executive Officer Mohamed El-Erian.
The Fed signaled last week it’s ready to take further steps to spur the economic recovery. Many policy makers said additional stimulus probably will be needed soon unless the economy shows signs of a durable pickup, according to minutes released Aug. 22 of the central bank’s most recent meeting, on July 31-Aug. 1. Fed Chairman Bernanke is scheduled to speak on Friday at the economic-policy conference in Wyoming.
“The minutes were consequential, and we don’t expect Bernanke to take it further than what the minutes said,” El- Erian, also the co-chief investment officer of the world’s largest manager of bond funds, said on Bloomberg Television’s “In the Loop” with Betty Liu. “It’s highly probably that he will outline the options that the Fed has available and the commitment to do more if needed.”
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