As well as announcing purchases of mortgage-debt, policy makers said in September they would probably hold the federal funds rate at about zero at least through mid-2015.
"The Fed will continue to be investors' best friend, and maybe even investors only friend at this stage," El-Erian said
Bill Gross, Pimco's founder and co-chief investment officer with El-Erian, said in a "Bloomberg Surveillance" interview on Nov. 2 that the Newport Beach, California-based firm was wagering on the Fed's actions causing inflation by purchasing inflation-index bonds.
"We think that you avoid a fiscal cliff through a mini bargain, not a grand bargain," El-Erian said. "Which means you limit the contraction from about 4 percent of gross domestic product to contractionary of about 1.5 percent. And you do it in a less disorderly fashion. We still believe the higher probability event is to avoid the fiscal cliff."