What the FED Should Do

Internet Stock Trading - the Credit Crisis according to Mohamed El-Erian

Mohamed El-Erian has just been on CNBC explaining his views on what the FED should do, as described in his article in our competitor publication The Financial Times.

According to Mr El-Erian the FED should first supplement monetary policy by filling the "void left by slowing moving fiscal agencies – through outright purchases of high-quality mortgage securities or by extending financing terms to one year." And, secondly, central banks should co-ordinate their intervention to try and counteract the effect of "disorderly exchange rates that exacerbate the credit turmoil."

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