A third round of economic stimulus from the Federal Reserve is “almost a done deal,” Pacific Investment Management Co.’s Bill Gross said in an interview on CNBC.
Gross, manager of the world’s largest bond fund at Newport Beach, California-based Pimco, wrote yesterday in a Twitter posting that released Fed minutes were “front-end curve friendly” and that a third round of quantitative easing, or QE3, is an 80 percent probability.
“It’s almost a done deal,” Gross said today on CNBC. “Eighty percent doesn’t say that, but it’s close.”
Gross said in the interview that investors should buy what the central bank will purchase and affect, including mortgage securities.
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