PIMCO’s Bill Gross is talking with Bloomberg TV’s Trish Regan and said he’s moved away from previous views that the Federal Reserve would step in and offer additional quantitative easing.”I don’t at the moment. I did listen intently at the press conference,” he said. “And the big three at the Fed have moved closer to the middle in terms of additional QE. They and the market are going to wait out for two key employment Friday reports as well as tomorrow’s GDP report.”
Gross added that the low interest rate environment has already fuelled inflation in the U.S.
“The amount of easing that we’ve seen over the past three years … has really been an inflationary thrust.”
Gross also told Regan that risk of a double dip recession was possible only if liquidity dried up as it did in 2008.