GUNDLACH Vs. GROSS: Only One Can Be Right About Bernanke's Next Move

gundlach gross

Photo: Sam Ro, Business Insider

All eyes and ears will be on Ben Bernanke and the Federal Reserve over the next few weeks.  This Friday is Bernanke’s speech at the Kansas City Fed’s annual event in Jackson Hole Wyoming.  And in September, the Federal Open Market Committee will be making its next announcement on interest rate policy.Reuters’ Sam Forgione notes that bond gods Bill Gross and Jeff Gundlach have conflicting expectations for Ben Bernanke’s next monetary policy move.

Here’s Gross’ call:

“I think either at Jackson Hole or two weeks later, at the next Fed meeting, that we’re going to see policies where checks will be written and Fed balance sheets expanded,” Gross said.

And here’s Gundlach’s call:

For his part, Gundlach, chief investment officer and chief executive officer of DoubleLine Capital, took the opposite stance and told Reuters he does not expect another round of major stimulus soon from the Fed.

“An actual massive bond buying program could take the 10-year down to pretty much as low as the Fed wants it. I don’t see that in the near term, however,” Gundlach said on Tuesday.


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