Bill Gross: Yellen Will Raise Rate By 25 BP In July Or August

Pimco Bill Gross Janus CapitalBill Gross at the Morningstar conference in Chicago - June 19th 2014 photo by ValueWalk

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%.
Bill Gross at the Morningstar conference in Chicago – June 19th 2014

 

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