![]()
- Shift Into High-Quality Stocks Could Move Market Higher
- Military Arms Race Dominates Dubai Air Show
- China: Low US Interest Rates Threaten Recovery
- Cramer: 5 Earnings Reports to Watch Next Week
- Hedge Fund Billionaire Paulson Reports New Citi Stake
- Court Rejects 'Clawbacks' for Alleged Stanford Victims
- Cities With the Most Home Price Reductions
- This Year's Biggest Thanksgiving Leftover: Cash
- Oil Next Week: What Traders Will Be Watching

- U.S. Stocks Rally for the Second Straight Week
- Dollar is Not Plunging—So 'Calm Down': Market Strategist
- Strategists Say Markets Have More Upside — But How Much?
- Hirschhorn: Risk-Averse Traders
- Roginsky: A Funny Thing Happened on the Way to Financial Reform
- This Year's Biggest Thanksgiving Leftover: Cash
- TV Series Inks Unique Deal For Fight
- First Time Buyers Rescue Housing: Realtors
- Dollar General Trades Higher After Its IPO
MOST SHARED
- CNBC Video: Warren Buffett & Bill Gates - Keeping American Great
- CNBC TRANSCRIPT: Warren Buffett & Bill Gates - Keeping America Great
- Analysis: APEC Nations Back Face-Saving Climate Plan
- Israel Going Green
- China's Role as Lender Alters Dynamics for United States
- Microsoft's Bill Gates Praises Apple's Steve Jobs For 'Saving the Company'
- Has Twitter's Finest Hours (Seconds) Come and Gone?
- Texas Man Drives Bugatti Into Pond; Blames Bird
The Federal Reserve has done its job and now needs to let fiscal policymakers take over, Pimco bond fund co-CEO Mohamed El-Erian told CNBC.
Comparing the U.S. economy to a car, El-Erian said the Fed needs to let somebody else do the driving.
"My sense is the Fed wants to be in the passenger seat now and leave Treasury behind the wheel," he said in a live interview. "I suspect that what they really want to do is not do very much, just leave the option out, keep interest rates low and observe, because the balance is harder now."
Had he been in charge, El-Erian said he would have taken this week's Fed Open Market Committee meeting as an opportunity to outline an exit strategy from the multiple measures it has taken to improve liquidity and keep mortgage rates low. Pimco operates the world's largest bond fund.
But he didn't fault the central bank, saying it has to be careful how it pulls away from such an active role in the financial markets.
"You don't want the Fed to be a direct player in so many markets, because by definition their incentives are noncommercial," El-Erian said. "So it's in the interest of the market to have the Fed gradually—and the critical word is 'gradually'—step back to the sideline and act as a referee, not as a referee and a player."
- Warren Buffett and Bill Gates spoke to Columbia students, and Buffett made the students a startling offer.
- For the chief of cable company Comcast, growth has been about making deals – generally very large deals.
- Some companies may start using insurance to shift carbon risk from their balance sheets to maybe... yours?
- The president and founder of Genesis Today wants to improve America’s health, and thinks Wal-Mart can help.
- Switzerland's privacy watchdog is taking legal action to force Google to make changes to its Street View service.
- A wealthy, distracted Texas driver crashed his million-dollar Bugatti Veyron sports car into a salt marsh, say police.












