Gross Says Job Gains Mean 50% Odds of December Fed Taper – Bloomberg 12-06-13

Salient to Investors:

Bill Gross at Pimco said:

  • Payroll growth in November signals at least a 50 percent chance the Fed will taper in December as it clearly wants out, but must be careful given the tepid growth of 2 percent.
  • The median analyst predicts the Fed will taper to $70 billion from $85 billion at its March 18-19 meeting.
  • Pimco remains focused on buying debt with shorter maturities because they are less susceptible to higher interest rates – the 2-yr yield has been relatively stable for a long time.
  • The Fed will keep its target rate for overnight funds in a range of zero to 0.25 percent until 2016.

Mohamed El-Erian at Pimco said most on the FOMC are worried about being experimental for so long, so this strong jobs report makes the normalization process easier.

Read the full article at http://www.bloomberg.com/news/2013-12-06/gross-says-job-gains-mean-50-odds-of-fed-tapering-in-december.html

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