“Inflationary pressures pose increasing price risks to Treasuries & stocks” as the Fed will react.
By Wolf Richter for WOLF STREET.
Bill Gross is at it again, now retired from Janus Henderson Investors which he joined after having left Pimco, which he co-founded. But some of the things he said in his editorial in the Financial Times nailed it, and they’d be funny, if they weren’t so serious.
The long-ago deposed bond king starts out that way: “The only bond kings and queens over the past half-century since credit was unleashed from its gold standard in the early 1970s have been the US Federal Reserve chairs.”
None of the other bond kings and queens over the decades have had the sufficient firepower to really move the markets, he says. “The Fed chair with the ammunition of the global currency has been sitting on the monetary throne for the past 50 years.”