Bill Gross and Larry Fink, two whose firms manage a whopping total of $4.7 trillion, seem to think that the FEDs recent foray into the Treasury markets is a waste of time. Both have been very vocal and recently stated that the plan is a mistake:
“I think Operation Twist was a mistake,” Fink said, referring to a program to lengthen the maturity of the Fed‘s bond portfolio. “And any more form of quantitative easing I would find troublesome.” Fink and Gross agreed that the only way to stimulate the U.S. economy is by fixing structural problems such as manufacturing jobs in the country.
“I agree with almost everything that Bill says,” Fink said. “My conclusion is just somewhat more optimistic than Bill‘s, but I see the same pitfalls.”
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