In an interview with Bloomberg’s Erik Schatzker and Stephanie Ruhle, Janus Capital’s Bill Gross said, Yellen will raise rates by 25BP in July or August, “[Yellen] will raise interest rates in July or August, I think, but it will be very slow. The curve suggests in 2019, February, they will finally reach 2% in terms of the fed funds rate. And I think that’s about right. But it will take us three or four years to get there.”

  • Interest rates have been too low for too long.
  • Fed may increase rates in ‘six months or so.’
  • Capitalism has been ‘distorted’ by low rates.
  • Stock market in U.S. won’t see big increase.
  • Days of ‘wine and roses’ is over in U.S. Stocks.
  • Central Bank actions in Japan, Europe Support stocks.
  • Yellen will raise rate by 25 BP in July or August.
  • U.S. GDP Number will probably be 3% on nominal basis.
  • U.S. Growth may be 2% or 1% by year-end on oil drop.
  • Will take 3 to 4 years for Fed Fund rate to reach 2%.
Pimco Bill Gross Janus Capital
Bill Gross at the Morningstar conference in Chicago – June 19th 2014