Bill Gross Calls For "Operation Switch," As Stimulus Impact Muted With Repeated Usage

A flat yield curve is the antithesis of a fundamentally strong economy, Bill Gross said in a Tuesday investment letter. Gross advocated that the U.S. Federal Reserve engage in “Operation Switch” rather than the “Operation Twist,” the 2012 central bank initiated program that purchased ten year Treasuries and is credited as a leading factor in flattening the long end of the yield curve.

Gross: The physics of Fed quantitative easing is the more it is used the less potent its stimulative impact

Rather than starting his letter with whimsical musings about his gender bending cat or compare a