Fed Will Print Until Jobless Rate Falls to 7% -Bill Gross

Pimco's Bill Gross reiterates his stance that the Fed will keep the cash-pumping machine humming for quite a while. In the latest Twitter post, Gross argues the Fed will keep buying assets, such as MBS, unless the jobless rate -- still above 8%, falls to 7%. The Fed likely aims to keep re-flating risky assets, with a 2.5% inflation target for the short-term, though the central bank will keep a 2% target for the longer-term, he says. He recommends investors take inflation protection on the Fed's stimulus. "Buy real assets ... gold ... a house!" he says. In an interview with Dow Jones on Thursday, Gross predicted the Fed could expand its balance sheet to $4tril-$5triln, from near $3tril now, before it stops printing money. 

Fed Will Print Until Jobless Rate Falls to 7% -Bill Gross

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