Bill Gross, co-chief investment officer of Pimco, the world's biggest bond fund manager, Thursday urged U.S. lawmakers to cut the massive federal deficit but not so swiftly as to choke off the nascent U.S. economic recovery.
Speaking exclusively to Reuters Insider, Gross said: "Let's cut the deficit, but let's do it gradually," so that real economic growth can take hold.
Lawmakers struck a deal on Wednesday that delays for two weeks a showdown over the current year's spending plan. Republicans are seeking some $61 billion of cuts to help reduce the deficit, estimated to hit $1.65 trillion this year, but Senate Democrats are preparing a measure that would keep funding essentially flat.
Gross, who oversees $1.2 trillion of assets at the Newport Beach, Calif.-based, investment management firm, said he doesn't expect a credible deficit reduction plan until after the 2012 elections.
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