Mohamed El-Erian, CEO of Pimco [ [see profile]], sees gloom and doom on the horizon for the U.S. and world economies.

El-Erain reportedly told an audience of the Financial Women's Association that Federal Reserve Treasury purchases will lead to faster global inflation while failing to revive U.S. economic growth.

According to El-Erain, quantitative easing won't be enough to stem U.S. unemployment and the Fed will buy more bonds because "it is terrified of deflation," Bloomberg reports.

El-Erian reportedly said quantitative easing means the U.S. will have the same issues in six to nine months time with the rest of the world being inflated. "It will have some benefits but not as much as we'd like. It will have costs and unintended consequences," he said.  

Edited by: Hung Tran


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