February 22, 2013 – PIMCO Founder Bill Gross ignited a heated discussion and debate with the Federal Reserve when he tweeted a pointed message on Wednesday morning, CNBC reported.

"Bond Vigilantes are no more. Central bankers are the masters of the universe but the question is:  Are they vigilant?" Gross tweeted.

The tweet and comment was a sign of many investors fears and concerns about the Fed’s rampant quantitative easing, which is flooding the economy with cash buying up bad debt.

Asked about the tweet on a CNBC interview on Friday, Gross explained, "I don't think the Fed is vigilant in terms of the negative aspects of zero-bound rates. I don't think they're vigilant in terms of other central banks and their quantitative easing policies."

"I don't they're vigilant in terms of asset prices," he concluded, rounding out the three areas where he believes that the Fed and central banks in general are dropping the ball.

Gross appeared on the CNBC program “Squawk Box” with James Bullard, president of the St. Louis Federal Reserve.

In response, Bullard offered, “"I think we are [vigilant]. We take all those aspects into account."

Bullard claimed that the Fed has improved systems to track financial markets, and added. “We certainly talk to the other central banks. We are well aware of what they're doing."

Gross’ incendiary tweet came about after the Fed released its January minutes on Wednesday afternoon. The Fed’s release stated that “many participants” had expressed concern about “"potential costs and risks arising from further asset purchases."

This inclusion ignited a fury of concerns and comments in the market about the central bank’s bond-buying program.

On CNBC, Gross argued with Bullard, stating that the Fed focused on unemployment and inflation to such a degree that it completely missed the 2008 housing bubble and "the destruction that asset prices can wreak upon an economy, in addition to higher inflation."

He agreed that the Fed should be vigilant against unemployment and inflation, but posited that vigilance against these alone was insufficient.

Bullard again claimed that the Fed was trying to make a difference.

"[The] systems in place on tracking what's going on, making sure that we're at least aware of different aspects of financial markets,” said Bullard. Those systems are a lot better than they were five years ago. And we are trying to have better market intelligence."

Bullard explained that knowing what to do about the market behavior that is being tracked is a larger questions.

“[It] is still a very live issue for us and for all central banks," Bullard warned.