Bloomberg News

Gross Says Next U.S. Quantitative Easing May Be $500 Billion

January 12, 2012

Jan. 12 (Bloomberg) -- Bill Gross, who runs the world’s biggest bond fund at Pacific Investment Management Co., said the Federal Reserve may embark on as much as $500 billion of quantitative easing in the second half.

The Fed’s purchases of U.S. debt mean that yields on 10- year bonds will probably remain “relatively stable” at about 1.9 percent throughout 2012, Gross said in a televised interview with Bloomberg HT news channel broadcast today.

U.S. economic growth may slow to 1 percent in the second half of the year, Gross said.

Pimco has no plans to buy Italian debt at 7 percent because “the economy itself is tipping and the recession that Italy and Spain and others are experiencing will perhaps continue for another several years,” he said.

To contact the editor responsible for this story: Mark Bentley at

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