Gross calls for US intervention to weaken the dollar
May 9, 2012 Leave a comment
Pimco’s Bill Gross, manager of the world’s largest mutual fund, has called for the US authorities to intervene in currency markets to bolster the US economic recovery.
Gross, (pictured), who runs the $258bn Pimco Total Return Bond fund, criticised the US government for exhausting traditional fiscal and monetary policy methods to boost growth and said it would have to start looking for alternative options.
The veteran investor urged Washington to consider changes to trade and currency policies much like Brazil, China and Europe have done, Bloomberg reports. This could include depreciating the dollar to increase the competitiveness of US manufacturing abroad, he said.
The latest employment figures reflect “the inability of the US economy to provide jobs”, he told Bloomberg, following disappointing figures from the US Bureau of Labour Statistics on Friday.