This week, SmartBrief will be bringing you selected highlights from the Milken Institute Global Conference.
PIMCO’s El-Erian expects lackluster economy to continue
PIMCO CEO Mohamed El-Erian said the firm is basing its strategy on a “lackluster recovery.” During the “Where Will Economic Growth Come From?” panel discussion, El-Erian said economic data have been weakening. “The last thing we need is a repeat of 2008, 2009, 2010, where the year starts strong,” then fades, he said. CNBC
Fed might need to raise rates sooner than expected, Warsh says
Kevin Warsh, a former governor at the Federal Reserve, said the central bank might need to increase interest rates sooner than forecast if inflation heats up or the economic recovery improves. The Fed recently kept monetary policy on hold and reiterated expectations that rates will remain near zero for a couple of years. The underlying forecasts “suggest an economy that continues to grow at a very moderate level over the forecast period, and inflation that stays more or less at core,” Warsh said during the “Where Will Economic Growth Come From?” panel discussion. “If any of those projections turn out to be faulty, policy will have to respond.” Reuters