Pimco’s Gross Predicts Repression With More Fed Easing
January 25 — The U.S. will suffer “financial repression” as the Federal Reserve implements additional quantitative easing, according to Bill Gross, who runs the world’s biggest bond fund at Pacific Investment Management Co.
A third, fourth and fifth round of easing “lie ahead,” Gross wrote in a Twitter post. The Fed will probably hold its benchmark interest rate at near zero percent for at least the next three years, the post said. Chairman Ben S. Bernanke said yesterday the Fed is considering additional bond purchases to boost growth after extending its pledge to keep interest rates low through at least late 2014. Read more.
