"I'm choked with emotion and hardly able to speak," the portfolio manager at Janus Capital Management said in an interview with CNBC's "Power Lunch."
"After hawkish talk at Jackson Hole from [Fed Chair] Yellen and [Vice Chair] Stan Fischer, who even said there'd be two hikes in 2016, they've chosen to defer once more a necessary hike to normalize short-term interest rates and provide savers, in my view, with at least a bit of thin gruel to work with to provide for education, retirement and health-care needs."
He believes the contradiction between what Fed officials have said leading up to the meeting and the outcome of the gathering is leaving investors "very confused."
The central bank was sharply divided when it opted to not hike interest rates at its September meeting.
On Tuesday afternoon, Gross predicted through his firm's Twitter account that there was a 50-50 shot the Fed would hike Wednesday.