Bill Gross Forecasts 0.25 Rate Move by the Fed This Year

Gross released his monthly investment outlook on Thursday and predicted that neither stocks nor bonds would be threatened by the eventual Fed tightening. The investment guru—formerly of Pimco, and now at Janus Capital—said that a slight rate increase will arrive in 2015, despite previously indicating that he did not see a Fed move on the horizon.

Gross made news on Wednesday when he broke with previous predictions of prolonged zero-rate policy, telling CNBC’s “Street Signs” that he now predicted that the Fed will raise its rates by 0.25 percent in a symbolic move sometime this year.

Thursday’s note postulated that global capitalism had begun to break down in the absence of hope that an investor can find an “attractive return,” but that some Fed officials had begun to “recognize the system’s distortion if only because inflation is going down, not up, in the process.”

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