In an interview with Bloomberg’s Tom Keene and Michael McKee on Bloomberg Radio’s Surveillance, Janus Capital’s Bill Gross said growth in wages lagging behind increases in U.S. employment gains makes it difficult to maintain the economic expansion at a pace that the Federal Reserve would like to see to raise interest rates, “It’s not about wages…the market is conflicted over what the Fed will do.” Gross said:
- Level of wage growth not enough to sustain growth.
- U.S. Should get used to wage gains of ‘2% of Less’
- The bull market in assets may be over.
- Double-digit returns in bonds a thing of the past.
- Fed may raise interest rates 50BSP by end of year.
- U.S. yields to stay close to where they are now.
Interview can be heard at: http://www.bloomberg.com/radio/ or below