PIMCO’s Gross cautions against inflation and credit “ocean”
Reuters – 2 hours 8 minutes ago.. .
By Sam Forgione
NEW YORK (Reuters) – Central bank policies will induce growth in developed countries this year but will create inflationary risks down the road, Bill Gross, founder and co-chief investment officer of PIMCO, said in his regular monthly letter to investors.
In the outlook, entitled “Tuesday Never Comes,” Gross highlighted how stimulative central bank policies have created an “ocean” of credit and said that the credit acceleration will produce economic growth this year for developed countries while also creating structural risks and rising inflation.
Specifically, commenting on the Federal Reserve, Gross said central bankers in the United States appear to believe that markets will buy future Treasuries at low yields “because the private market’s ‘stock’ of Treasuries has been depleted.”