EL-ERIAN: The Risk Of Collateral Damage And Unintended Consequences Caused By The Fed Is Material And Growing

“Mohamed El-Erian, CEO of PIMCO, is out with his latest criticism of the Federal Reserve’s efforts to bolster the economy.

“The Fed increasingly finds itself in a large and deepening policy dilemma,” he wrote in The Financial Times.

El-Erian notes that “the Fed has no choice but to consider another mix of unconventional measures – specifically, additional purchases of securities, a lower interest rate on excess reserves, an even more aggressive communication policy, and enhanced access to the discount window.”

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