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Mohammed El Erian: life after Pimco
by Danielle Levy on Apr 23, 2014 at 15:28
'It is difficult to find a new explanation that captures all three in an elegant way,' he added.
He highlights comments made by incoming Federal Reserve chair Janet Yellen and outgoing chair Ben Bernanke, which suggest that an uncertain outlook will remain as the Fed evolves from a tools-based world to one that is objectives-based. This means the uncertainty premium goes up, El Erian added.
Due to slower growth in China and unresolved issues in the Eurozone, he does not expect the Fed to raise rates any time soon.
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