Bill Gross Says Central Banks Have Inflated Asset Prices

Central banks are stuck in a permanent cycle of low interest rates and money printing that bond guru Bill Gross said eventually will blow up.

In his monthly newsletter for clients, the Janus Capital portfolio manager again railed against policies from the Federal Reserve and its counterparts around the world that he said have inflated asset prices but have done little to boost economic growth.

He likened the easy-money efforts to “financial methadone,” in which the Fed’s withdrawal of stimulus has been met with increased efforts from the European Central Bank, the Bank of Japan and elsewhere.

The global central bank balance sheet has surpassed $12 trillion, Gross said. At the same time, Fitch Ratings recently reported that global sovereign debt with negative yields still surpasses $9 trillion.

via CNBC

Content is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Business Information & Services, Inc. or any of its affiliates, subsidiaries, officers or directors. If you would like to reproduce or redistribute any of the content found on MarketPulse, an award winning forex, commodities and global indices analysis and news site service produced by OANDA Business Information & Services, Inc., please access the RSS feed or contact us at info@marketpulse.com. Visit https://www.marketpulse.com/ to find out more about the beat of the global markets. © 2023 OANDA Business Information & Services Inc.