Bill Gross and the Fed

http://www.futureofcapitalism.com/2010/09/bill-gross-and-the-fed

The Web site Zerohedge.com takes note of a CNBC appearance by Pimco's Bill Gross:

it is one thing to speculate based on indirect evidence, and something totally different to hear Mr. Gross on primetime TV essentially validating that he just may have an inside line to the Federal Reserve Board. In all the commotion over yesterday's FOMC announcement, some may have missed the following line uttered by the Newportbeachian: "What is important going into November is the staff forecast for economic growth for the next 12-18 months. Our understanding is that the Fed is about to downgrade their forecast from 3% down to 2%." At which point the CNBC anchors conveniently confirm that Mr. Gross just disclosed something which is completely non-public: "We don't have that forecast yet, right Steve?.. We won't get that for 3 weeks Erin that's when it comes out with the minutes of this meeting." Well, we won't, but Mr. Gross, who manages $1.2 trillion in debt, almost as much as the entire Federal Reserve, sure seems to already have access to it.

Thanks to reader-participant-community member-watchdog-content co-creator B. for sending the tip.

by Editor  |  Sep 22, 2010 at 3:23 pm Related Topics:  Bill Gross, Federal Reserve receive the latest by email: subscribe to the free futureofcapitalism.com mailing list