Federal Reserve

Gross: Why Fed will have problems raising rates

Today investors weren't wearing bathing suits: Gross
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Today investors weren't wearing bathing suits: Gross

The U.S. economy will have "problems" reaching goals outlined by the Federal Reserve's policy committee, rendering the chances of the central bank raising interest rates in June nearly impossible, bond guru Bill Gross said Wednesday.

A quick return to normal economic growth rates seems unlikely, and the factors leading to a sluggish winter may not prove as transitory as the Fed says, Gross contended. Still, he believes the central bank will move its key funds rate higher at some point this year.

"I think they're going to raise rates once in 2015, if only because they want to prove that they can do it," Gross, manager of the Janus Global Unconstrained Bond Fund, said in an interview on CNBC's "Power Lunch."

Fed keeps interest rate hike on hold
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Fed keeps interest rate hike on hold

The Federal Open Market Committee on Wednesday said it would make no changes to its zero interest rate policy, which has been in place since late 2008. It also removed hints at a potential timeline.

Read MoreFed: All calendar references removed

The statement came as the U.S. economy grew by a meager annualized rate of 0.2 percent in the first quarter.

Gross showed little enthusiasm about economic growth. He said potential 2 to 3 percent expansion moving forward seemed "problematic," adding that the U.S. shows "long-term structural issues" including high debt and slow job growth.

He also outlined what he saw as a lack of liquidity in the bond market, an issue which he mentioned through Janus' Twitter account Wednesday.

Tweet

Gross touched on news that Pimco—the firm he co-founded and recently left—had hired former Fed Chairman Ben Bernanke as a senior advisor. Gross said he might "sneak over and take a listen" to Bernanke.

He added he wanted to discuss economics with Bernanke over a beer.