Bill Gross, manager of the world’s biggest bond mutual fund, said Federal Reserve Chairman Ben S. Bernanke will go ahead with a plan to reduce the central bank’s unprecedented asset purchases despite a disappointing jobs report.
“I think Bernanke and company are committed to a taper,” Gross, co-founder Pacific Investment Management Co., said in a radio interview on “Bloomberg Surveillance” with Tom Keene. “It will be taper lite as opposed to a strong tapering.”
Editor's Note: Weird Trick Adds $1,000 to Your Social Security Checks
Payrolls in the U.S. climbed less than projected in August after smaller gains the prior two months, indicating companies are being deliberate in their hiring as they wait for a pickup in demand.
The gain of 169,000 workers last month followed a revised 104,000 rise in July that was smaller than initially estimated, Labor Department figures showed in Washington. The median forecast of 96 economists surveyed by Bloomberg called for an August increase of 180,000. Unemployment dropped to 7.3 percent, the lowest since December 2008.
The Fed will probably reduce its assets purchases by $10 billion and focus on Treasury bonds, said Gross, who’s also co-chief investment officer, along with Mohamed El-Erian, of the Newport Beach, California-based firm.
© Copyright 2022 Bloomberg News. All rights reserved.