Paul McCulley rehired by Pimco

Pimco said on Tuesday it has rehired Paul McCulley, who was previously a portfolio manager and the bond giant’s top analyst of the U.S. Federal Reserve’s policies, in the latest management change after the departure of the firm’s chief executive Mohamed El-Erian earlier this year.The firm, which oversaw $1.94 trillion at the end of March, said McCulley will be its chief economist, a newly created role, and will report to Bill Gross, co-founder and chief investment officer.McCulley will assume much of El-Erian’s role as Pimco’s public face in leading “discussion on global macroeconomic issues and central bank policy, writing and publishing commentary, and speaking with Pimco’s clients around the world,” the firm said in a statement.El-Erian, who has repeatedly called McCulley “my good friend”, declined to comment for this story. Gross and El-Erian had a very public falling out in the weeks after El-Erian announced his departure from Pimco, whose full name is Pacific Investment Management Co.Gross spent several months wooing McCulley back to Newport Beach, California-based Pimco, according to four sources close to McCulley.McCulley had been vying for a second time for a Federal Reserve board seat over the past year and even cut his long hair to help his case but he lost out to others, the sources said. McCulley told Reuters back in 2011 that he has always dreamed of being on the Fed.