The Fed is losing its benchmark: Gross
"They basically said they can't assess the direction of the future economy," bond expert Bill Gross told CNBC's "Power Lunch." "To me that's not only disheartening, but confusing and it suggests a Fed that is beginning to lose its benchmark."
The comments came as the Federal Open Market Committee decided to keep rates unchanged on Wednesday, stating that the committee is "closely monitoring global economic and financial developments."
This Fed is not depicting confidence on the future of the economy, Gross, Janus' lead portfolio manager noted on Wednesday.
As the decision came in, the Dow Jones industrial average fell over 100 points, and stocks traded at session lows.
At the same time, a whopping 88 percent of respondents in a recent CNBC Fed survey said that they expected the bank wouldn't hike until May. However, Gross considers that stocks are disappointed in the Fed's decision.
"Stocks are leaning towards the impression that growth is slowing," Gross said.
Gross, who previously expressed discontent with the central bank, stated that the Fed's focused on "historic models ... which stress employment pressures — we heard that in the statement today — which over time in their view have led to rising wages and therefore rising inflation," adding that he thinks "they're using the wrong road map."
As for the future of the U.S. economy, Gross forecasts a possible recession.
"I think between now and (24 months), the U.S. will experience a recession. It's been a long time. I think the U.S., (not necessarily in the consumer sector but in the corporate sector), is relatively highly leveraged," he said, adding that defaults in the energy sector lower investments.
"So at some point, the mild recession in the U.S., it's hard to avoid when the rest of the world, certainly the emerging world, is significantly depressed," he told CNBC.