Bill Gross, who runs the world’s biggest bond fund at Pacific Investment Management Co., said unprecedented monetary accommodation has lifted prices of stocks and bonds to levels that exceed measures of true value.
Janet Yellen is poised to take charge of a Federal Reserve System where boardroom dissent has become increasingly rare, making the central bank’s governing body an unusual example of harmony in a divided capital.
Federal Reserve Governor Jeremy Stein, who has backed record stimulus, said the Fed should more closely link the winding down of its $85 billion in monthly bond purchases to economic data such as the jobless rate.
Financial-market bubbles are proving a more pressing threat than inflation to Federal Reserve officials who’ve bought trillions of dollars in bonds and kept the target for short-term interest rates near zero since 2008.
Federal Reserve Governor Jeremy Stein, who has backed record stimulus, said officials considering when to start reducing the pace of asset purchases should evaluate economic data since the program began last September, rather than looking only at the most recent figures.
President Barack Obama plans to nominate Jerome Powell, a former partner at Carlyle Group LP, to serve another term on the Federal Reserve Board, according to a government official briefed on the matter.