Pimco's Mohamed El-Erian
says there is a 60% chance the Fed will start the taper process this week -- but investors should fixate on that.
The PIMCO CEO said that such a move would only be one piece of policy package that could include any number of other pieces, including changes in what they pay banks for excess reserves and forward guidance, reports Businessweek
El-Erian made these comments during an interview on Bloomberg TV
“The idea is that the Fed is going to offer the market a package, and the market is going to be reacting to the package and not just one element, which is the taper,” El-Erian told Betty Liu and Cory Johnson on Bloomberg Television’s In the Loop.
“The question is what else do they do, and I think that’s what the market hasn’t priced in fully yet, which is what else can accompany the taper decision.”
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