Bill Gross Slams "Clueless Fed" Over 1.2% Growth In 12 Months

As we pointed out earlier, today's GDP revision meant that real US GDP has grown only 1.2% in the past 12 months, rising at the lowest annual rate since 2010. And, it appears, Bill Gross also noticed that the US economy is barely growing, leading to the following violent outburst against the Fed, whom he blames for the lethargic growth.


Gross is, of course, right. However, what Gross fails to note is that the Fed is not only clueless, it is also trapped.

As we explained in June, "A 1% Increase In Rates Would Result In Up To $2.4 Trillion Of Losses", and that is only within the bond space. Equity losses would be even greater. And since the Fed's only mandate is to boost the wealth effect, the last thing the Fed can afford is to push yields higher.

Your move, "clueless" Janet.


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