Gross slams 'devilish' Fed policy

PIMCO's co-CIO Bill Gross has hit out at US policymakers for introducing "devilish policy tools" to rebalance US debt, effectively "robbing savers."

Gross, who manages the world's largest bond fund, the $250bn PIMCO Total Return fund, also recommends investors "exorcise" gilts and treasury bonds from their portfolios and replace them with assets offering a better risk/reward ratio. "To rebalance debt loads and re-equitise financial institutions that should have known better, central banks and policymakers are taking money from one class of asset holders and giving it to another. "A low or negative real interest rate for an "extended period of time" is the most devilish of all policy tools. And the asset class holder that it affect...