Gross Says Central Banks Must Use Caution in Further Tightening

Bloomberg/John Gittelsohn/07-20-17

It won’t take much for the Federal Reserve to raise short-term interest rates too far, triggering an economic reversal making indebted students, corporations and other borrowers unable to repay loans, according to billionaire bond manager Bill Gross.

“Central bankers and indeed investors should view additional tightening and ‘normalizing’ of short-term rates with caution,” Gross, who runs the $2.1 billion Janus Henderson Global Unconstrained Bond Fund, said in an investment outlook published Thursday.

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