Pimco’s Gross Says Fed Policy Means ‘Free’ Debt for Treasury
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Pacific Investment Management Co.’s Bill Gross, manager of the world’s biggest bond fund, said the Federal Reserve’s latest round of monetary stimulus will enable the Treasury department to issue debt for no cost.
The central bank said yesterday it will buy $45 billion a month of Treasury securities starting in January, expanding its asset-purchase program, and for the first time linked the outlook for its main interest rate to unemployment and inflation targets. The purchases will add to the $40 billion a month it is buying of mortgage debt.