El-Erian Says Fed Risks Instability, Excess by Keeping Rates Low

August 22, 2016 4:02 PM

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Allianz SE’s Mohamed El-Erian said that Federal Reserve officials need to consider the costs of keeping interest rates low, even as the U.S. economy is pressured by diminished worker productivity.

“There is also the risk of financial instability down the road” because of extraordinary monetary policy, El-Erian, Allianz’s chief economic adviser, said Monday in an interview on Bloomberg Radio. “And that, I think, is the strongest argument for trying to slowly normalize rates, because otherwise ...

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