Bill Gross: The Fed Needs to Keep Rates Low
Save
Bill Gross.
Oil’s falling, financial markets are in turmoil and the Federal Reserve shouldn't make the situation worse, Bill Gross says.
Gross, who in September abruptly resigned his post heading the world's largest bond fund, told Bloomberg Radio's Tom Keene the Fed should be careful what it says in its policy statement expected on Dec. 17.
"The Fed, as the central banker of the world, has to worry about financial conditions not just in the United States, but the world," Gross said. "They should be very cautious about any tightening implications."
After 43 years of managing the Pimco Total Return Fund, which had $293 billion in assets at its peak, Gross left Pimco and became manager of Janus Global Unconstrained Bond Fund. The fund has collected almost all of its $1.2 billion in assets since he signed on.
After the U.S. reported strong jobs data on Dec. 5, many economists expectedthe Fed to start preparing markets for a 2015 interest-rate increase. Gross says falling oil prices and market turmoil should move the Fed "toward a dovish stance compared to what the market expected a few days ago."
No comments:
Post a Comment