Tags: bill gross | ben bernanke | pimco | federal reserve

Bill Gross Says He Wouldn't Hire Former Fed Chair Bernanke as Adviser

Wednesday, 29 April 2015 07:36 PM

Bill Gross said he wouldn’t hire Ben S. Bernanke as an adviser. He’d rather read the former Federal Reserve Chairman’s blogs and tweets.

"Obviously it's a public relations effort," Gross said Wednesday in a television interview with Erik Schatzker, the same day his former firm Pacific Investment Management Co. announced it had recruited the ex-Chairman of the Fed as a senior adviser. "To be able to hook up with Ben Bernanke, I think it is."

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 joined Janus Capital Group Inc. in September after losing a power struggle with senior managers at Pimco, the manager of the world’s largest bond fund.

He said when he was at Pimco the firm hired Bernanke’s predecessor Alan Greenspan, which was useful for policy guidance. A former Fed chair can provide a sense of what the Fed is thinking about inflation, Gross said.

After a stilting start, Gross has regained his footing at Janus. His $1.46 billion Janus Global Unconstrained Bond Fund has returned 2.72 percent this year through April 28, beating 87 percent of comparable funds, according to data from research firm Morningstar Inc.

Meanwhile, 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."

Gross said in the interview that he hasn’t changed his view on German sovereign debt after tweeting last week that betting against 10-year bunds is the “short of a lifetime.”

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Bill Gross said he wouldn't hire Ben S. Bernanke as an adviser. He'd rather read the former Federal Reserve Chairman's blogs and tweets.
bill gross, ben bernanke, pimco, federal reserve
Wednesday, 29 April 2015 07:36 PM
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