Wall Street’s Bond King Calls US Central Bank the ‘Zombie Fed’

Jon Economy, Fiscal Policies, Government, Market Commentary, Politics

Wall Street’s ‘bond king’ said investors have lost faith in central banks, and called the Federal Reserve the ‘Zombie Fed.’
Jeffrey Gundlach made the comments in an interview with Reuters after safe-haven German Bund yields fell below zero on for the first time and global equity markets continued a precipitous slide:
Central banks are losing control and they don’t know what to do … just like the Republican establishment and Donald Trump.’
CNBC reported German 10-year sovereign bonds going negative for the first time ever on Tuesday:
At around 8.30 a.m. London time, the yield hit zero and briefly fell into negative territory as investors continued to flock to safe-haven assets. Bond prices and yields move in opposite directions and a negative yield implies that investors are effectively paying the German government for the privilege of parking their cash. By the end of the European trading day, the yield was still just in negative territory at negative 0.0020%.’

This post was published at Schiffgold on JUNE 15, 2016.