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El-Erian, Minerd expect Federal Reserve to remain active

Scott Minerd Mohamed El-Erian
(Image credit: Guggenhiem Partners' Scott Minerd shares his view on the global capital markets - Photo credit: Milken Institute)

According to some of the leading minds at the Milken Institute Global Conference, the Federal Reserve will continue to play an active role in the US economy throughout the rest of 2017 and beyond.

Speaking on a panel tasked with assessing Global Capital Markets, Mohamed El-Erian, the chief economic advisor at Allianz, said he expects the Fed to finish the year with a total of 3 rate hikes.

El-Erian, who is known for his not-so-rosy economic prognostication, drew laughs from the crowd when he explained, “I am not usually optimistic.” But nevertheless, he said the fundamentals are there for such activity from the Fed.

Meanwhile, Scott Minerd, the chairman of investments and global chief investment officer at Guggenheim Partners, anticipates the Fed will be active in other ways besides interest rate moves. Minerd believe Federal Reserve Chair Janet Yellen will feel an almost personal obligation to make sure significant action is taken on unwinding the Fed’s $4.5 trillion balance sheet before she leaves her post.