Gross Tells Fed to `Get Off Zero Now!' as Economies Run on Empty
- Janus manager says market jolt fair trade for long-term health
- Mainstream Americans `cooked alive' as central bankers dally
When and How Fed Should Raise Rates
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Bill Gross said the Federal Reserve needs to raise interest rates as soon as possible, trading some near-term market losses for longer-term stability and a healthier financial system.
If zero interest rates become the long-term norm, economic participants will soon run on empty because their investments aren’t producing the gains or cash flow needed to finance past promises in an aging society, he wrote in an investment outlook on Wednesday for Denver-based Janus Capital Group Inc. That’s already beginning to happen as Detroit, Puerto Rico, and, he predicts, soon Chicago, struggle to meet their liabilities.