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Fed May Shift Talks Toward More Stimulus, El-Erian Says

Federal Reserve policy makers may shift discussion away from when to reduce monetary stimulus, given data showing the economy is weakening, according to Pacific Investment Management Co.’s Mohamed A. El-Erian.

“The inherent momentum of the economy is still weak and you don’t want to taper off too quickly,” El-Erian said, speaking in a Bloomberg Television interview with Willow Bay at the Milken Global Conference in Los Angeles. “They are going to try to change the narrative away from the Fed is taking its foot off the accelerator, to the Fed is maintaining its foot on the accelerator. It could even press it harder.”