Bill Gross, founder and co-chief investment officer of bond giant Pimco, said the Federal Reserve has not been paying enough attention to the monetary stimulus programs of other central banks.
"I don't think they are vigilant in terms of other central banks and their quantitative easing policies," Gross told television network CNBC.
"I don't think the Fed is vigilant in terms of the negative aspects of zero-bound rates," he said. "I don't they're vigilant in terms of asset prices."
However, St. Louis Fed President James Bullard, a guest at the same time, fought back. "I think we are [vigilant]. We take all those aspects into account."
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Earlier this week, Gross, who runs the world’s biggest bond fund at Pacific Investment Management Co., said Treasurys gained this week for the wrong reason.
U.S. government securities rose on speculation economic growth will slow as the Federal Reserve cuts its efforts to support growth, Gross said. Several policy makers said the Fed should be ready to vary the pace of its $85 billion in monthly bond purchases, according to minutes of the central bank’s Jan. 29-30 meeting released this week.
“The Treasury market has caught a bid based upon that potential expectation,” Gross said late Thursday in New York on Bloomberg Television’s “Street Smart” with Trish Regan and Adam Johnson. “I sort of think otherwise. Yields, certainly in the mortgage market, and the Treasury market might go up as well.”
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