The Fed is walking a tightrope between inflation and a recession, hoping to find its way to neutral. Bill Gross, of PIMCO, shares their insight.
"There’s a lot of stress in the
financial markets. Let’s face it, this economy, the US economy and
even the global economy is delevering, and when an economy delevers there are
substantial problems and substantial risks.
"We’ve seen a lot of that. We’ve
seen writeoffs in the hundreds of billions of dollars with more to come. But
yeah, there’s a lot of tenuous action in the financial markets these days and I
expect more of it."
Gross: Fed Will Hold Steady for Rest of Year
CNBC.com | 25 Jun 2008 | 03:20 PM ET