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The Federal Reserve and Chairman Ben Bernanke not only are willing to tolerate inflation but actually are trying to create it, with a "mess" left behind for their successors to clean up, Pimco's Mohamed El-Erian told CNBC.
The reason, the Pimco CEO said, is that the risks outweigh the rewards as the central bank tries to stimulate an economy that still is foundering three years after the financial crisis recession ostensibly ended.
El-Erian has called the policy a "reverse Volcker moment," in reference to former Fed Chairman Paul Volcker, who rose rates and deliberately put the nation into recession in the early 1980s to control runaway inflation.