Central Banks

Fed Should Stop Quantitative Tightening, Reduce Interest Rates Soon, Bill Gross Says

Fed cuts should come in next 6 to 12 months: Pimco co-founder
US policymakers next meet Jan. 31 to discuss interest rates

Pimco co-founder Bill Gross says the Fed “has not done well” and should lower rates so the economy does not go into a significant recession.Source: Bloomberg

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By Ye Xie, Romaine Bostick, and Alix Steel

January 22, 2024 at 8:58 PM UTC

Updated on

January 22, 2024 at 11:57 PM UTC

This article is for subscribers only.

Bill Gross has some advice for the Federal Reserve: stop winding down its balance sheet now, and start cutting interest rates in coming months to avoid recession.

“I would stop quantitative tightening,” the co-founder and former chief investment officer of Pacific Investment Management Co. said on Bloomberg Television when asked what he would do differently if he were leading the Fed. “That is just not a correct philosophy and policy at this point in time to continue to tighten quantitatively.”