Janus’s Bill Gross Confident Fed Will Raise Rates in September

Bond trader Bill Gross said he sees the Federal Reserve raising interest rates in September by 25 basis points.

“September is the number for sure,” Gross said Friday in a Bloomberg Radio interview with Tom Keene. “The Fed really wants to get off the dime.”

The Fed is “mentally committed to moving before year end,” Gross said, despite the Bank of England’s Monetary Policy Committee this week voting 8-1 to keep its key rate at a record low and talking about changing policy next year.

A move in September is “not unanimous” but is the “majority opinion” now, he said. Any increase will likely be 25 to 50 basis points. A 50 basis point move would “scare the market,” he added.

Gross, who joined Janus Capital Group Inc. in September after abruptly leaving Pacific Investment Management Co., manages the $1.5 billion Janus Global Unconstrained Bond Fund.

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