Bill Gross of Janus Capital spoke with Bloomberg Television's Erik Schatzker about Wednesday's Federal Open Market Committee statement and the outlook for Federal Reserve policy, global bond markets and Pacific Investment Management Co.'s move to hire former Fed Chairman Ben S. Bernanke as an adviser.
On Pimco hiring Bernanke, Gross said: 'Obviously it's a public relations effort….To be able to hook up with Ben Bernanke, I think it is. And that was one of the reasons why we did it with Alan Greenspan [when I was at Pimco], but we found out that there were some very positive benefits to it as well'.
When asked whether he would hire him if he could, Gross said: 'I don't think so. I have moved on in terms of my personal experience, and I am more than glad to read his weekly blogs, and get information that way and to spend the rest of my time in markets'.
Gross said he sees the Fed raising rates by 25 basis points: 'They want to prove that they're not healthy, but that they can get out of bed and stand on their own two legs. And that means a 25-basis point increase perhaps in September or December, but from that point forward, and that is the key, how quickly will they move back to what we know as a new neutral policy rate'.
Videos for viewing:
Full interview: http://bloom.bg/1JTJCpG
Gross: Pimco Hiring Bernanke is a PR Effort: http://bloom.bg/1GGoNOn
Gross: The Fed Will Raise Rates This Year to Prove It Can: http://bloom.bg/1GGp4Ri
CREDIT: BLOOMBERG TELEVISION