The Federal Reserve is unlikely to raise interest rates for at least 12 months because the U.S. economy isn’t generating enough growth to lower unemployment, Pacific Investment Management Co.’s Bill Gross said.
The Fed would probably like to see the economy adding at least 200,000 jobs a month before considering rate increases, Gross said in a radio interview on “Bloomberg Surveillance” with Tom Keene.
The U.S. jobless rate unexpectedly fell in January to the lowest level since April 2009, while payrolls rose less than forecast, depressed by winter storms.
Unemployment declined to 9 percent last month from 9.4 percent in December, the Labor Department said today in Washington. Employment rose by 36,000 workers, the smallest gain in four months, after a 121,000 rise in December that was larger than initially reported. Payrolls were projected to climb 146,000, according to the median forecast in a Bloomberg News survey.