{"id":436788,"date":"2010-03-17T02:09:00","date_gmt":"2010-03-17T06:09:00","guid":{"rendered":"http:\/\/www.businessinsider.com\/pimco-forget-bernankes-ultra-low-interest-rate-next-month-the-fed-will-tighten-hard-with-other-tools-2010-3"},"modified":"2010-03-17T02:09:00","modified_gmt":"2010-03-17T06:09:00","slug":"pimco-forget-bernankes-ultra-low-interest-rate-next-month-the-fed-will-tighten-hard-with-other-tools","status":"publish","type":"post","link":"https:\/\/mereja.media\/index\/436788","title":{"rendered":"PIMCO: Forget Bernanke’s Ultra-Low Interest Rate, Next Month The Fed Will Tighten Hard With Other Tools"},"content":{"rendered":"

\"el<\/p>\n

PIMCO’s Mohamed El-Erian has issued an important reminder for anyone who thinks Bernanke isn’t tightening monetary policy just because he plans to keep interest rates flat for an extended period.<\/p>\n

There are other fed actions, beyond the interest rates, that will tighten policy.<\/p>\n

At the end of March, the Fed’s $1.25 trillion mortgage-backed security purchasing program will end.<\/p>\n

That’s a huge form of credit tightening, says El-Erian<\/a>, since it removes massive liquidity from this market.<\/p>\n

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