Pimco’s Gross Says Fed to Shift Operation Twist to Mortgages

From bloomberg.com

Pacific Investment Management Co.’s Bill Gross said the Federal Reserve will likely shift focus to mortgage securities to keep borrowing rates low when its so- called Operation Twist program ends in June. It will be a “twist on another twist going forward,” Gross, who runs the world’s biggest bond fund, said in an “InBusiness with Margaret Brennan” interview on Bloomberg Television. The Fed purchased $2.3 trillion of debt in two rounds of s- called quantitative easing that have become known as QE1 and QE2 as part of its efforts to support the world’s biggest economy. The Fed is replacing $400 ... (full story)