PIMCO's El-Erian: QE3 Won't Produce The Outcomes We Want

El-Erian: "The Fed does not have enough policy instruments to deal with the challenges facing the economy. They're trying to use communication as an extra tool now. WE have used rates, we have had QE, now you see them using communication, trying to push investors to take on more risk. The problem is two-fold. One is there is disagreement on the FOMC. Secondly, it is not a very effective policy instrument. There are not just limited benefits, but there are also costs and risks. The Fed is in a difficult position. It is trying to be active, but it does not have effective instruments at this stage."

Read it at Zero Hedge (with video)
PIMCO's El-Erian: QE3 Won't Produce The Outcomes We Want