Mohamed El-Erian, CEO and and co-CIO of Pimco, discusses the Fed's "new normal" with CNBC.
Comments made by El-Erian:
"Fed policy is not enough. You need to do more than that to get off that road," he said.
"First, selling a vision, a long-term vision as to what the policy response is to restore growth and employment. And second, to fill it out with proper structural policies."
"First, it's very difficult to get consensus on the FOMC. Second, there's a realization that policy effectiveness is going down. You get less outcomes for the same unit of reaction. And third, it's the wrong thing to focus on"
"The country is facing structural issues and it needs structural solutions, Just focusing on the Fed is like sending in a wide receiver to play quarterback. Yes, the wide receiver is a good athlete. But he's not a quarterback and we need to focus on structural issues."
Comments made by El-Erian:
"Fed policy is not enough. You need to do more than that to get off that road," he said.
"First, selling a vision, a long-term vision as to what the policy response is to restore growth and employment. And second, to fill it out with proper structural policies."
"First, it's very difficult to get consensus on the FOMC. Second, there's a realization that policy effectiveness is going down. You get less outcomes for the same unit of reaction. And third, it's the wrong thing to focus on"
"The country is facing structural issues and it needs structural solutions, Just focusing on the Fed is like sending in a wide receiver to play quarterback. Yes, the wide receiver is a good athlete. But he's not a quarterback and we need to focus on structural issues."
