Pimco’s Bill Gross Says Fed To Keep Rates Low Until 2016

Bill Gross, co-head of the world’s largest bond manager, repeated his call that interest rates would remain low for at least two more years.
“Our primary thrust has been to focus on what we are most (although not totally) confident about, that the Fed will hold policy rates stable until 2016 or beyond,” Gross, co-chief investment officer of $1.97 trillion Pimco, wrote in a monthly note to clients Tuesday.

Gross made a similar pronouncement in July and has so far been right—interest rates are still near zero. At the same time, Pimco’s largest mutual fund, the $247 billion Total Return Fund Class A, has struggled this year relative to other asset classes, especially stocks. It’s down 3.2 percent year to date through November.

via CNBC

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza