The U.S. Federal Reserve's bond-purchasing program and low interest rate policies are buying Washington time to solve the nation's debt crisis, said Pimco's Head of Global Equities Neel Kashkari.
But he told CNBC's "Squawk Box" on Thursday that President Barack Obama and Republican leaders need to compromise on the "fiscal cliff" or Fed Chairman Ben Bernanke's actions to help the economy and the stock market will have been for nothing. (Read more: Fed to Keep Easing, Sets Target for Rates)
"Bernanke should be credited for being bold and experimenting," but the Fed's moves won't lead to real economic growth on their own, Kashkari said. "If leaders in Washington don't take over, then this is going to lead to an inflationary outcome."