NEW YORK, Aug 27 (Reuters) - Mohamed El-Erian, chief executive of bond giant Pimco, said Tuesday that the economy cannot absorb uncertainties, including another “fight” on the debt limit.
“The economy cannot, cannot absorb a whole list of uncertainties, including another fight on the debt limit,” El-Erian, also co-chief investment officer of Pimco, told Bloomberg Television.
The U.S. Treasury Department has set a deadline for raising the debt ceiling, and said Congress needs to act by mid-October, or the country will face an unprecedented default.
Pimco, a unit of European financial services company Allianz SE, had $1.97 trillion in assets as of June 30, according to the firm’s website. The firm’s Pimco Total Return Fund is the world’s largest bond fund.