Rick Rieder, head of bonds at BlackRock, accuses the Federal Reserve. The Fed's bond-buying program would be like a large and dull hammer. He says it in an interview with the Financial Times. Before him, it was Bill Gross (Pimco) to attack Ben Bernanke's expansionary Fed policy.
"Fed policy has had a distorting effect on capital allocation decisions at virtually every level of the economy," Rieder said, attacking the Quantitative Easing policy. And it is news that the two most important American bond investment houses (Pimco and BlackRock) have openly sided against this strategy.
Meanwhile, the minutes of the March 19-20 Fed meeting are published in advance and it is announced that only some of the board members expect a reduction in the pace of asset purchases towards the middle of this year. Most of them, on the other hand, expect to slow down quantitative easing beyond the middle of the year.
