“The Federal Reserve is likely to taper its quantitative easing in September, says bond-investing legend Bill Gross, co-chief investment officer of Pimco.
The Fed is currently buying $85 billion of Treasurys and mortgage-backed securities a month.
Both Fed Chairman Ben Bernanke and New York Fed President William Dudley have suggested a tapering is coming within the next few meetings of the Fed’s policymaking Federal Open Market Committee, Gross told CNBC.
“I think we’re looking at a potential tapering in the next few months, probably around September,” he said.
Bernanke gave conflicting comments about whether a tapering will come soon in his congressional testimony Wednesday.
“That’s what happens when you approach an inflection point,” Gross said. You talk with uncertainty to alert investors there’s change coming.”
The bond market already is preparing for a tapering, with the 10-year Treasury yield having risen to 2.04 percent from its record low of 1.38 percent in July 2012, Gross says….”
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The next time this dipshit is right about anything will probably be the first time.