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Janus’ Gross says U.S., global economies too leveraged for aggressive Fed

“In his latest Investment Outlook piece, Gross, who runs the $2.2 billion Janus Henderson Global Unconstrained Bond Fund, said the U.S. and global economies are too highly leveraged to stand more than a 2 percent fed funds rate in a 2 percent inflationary world” reports businessinsider.com. “The bond market’s current ‘beast’ is not so much a killer but a hibernating bear awakening from an extended secular bullish trend of lower inflation and excessive central bank accommodation,” Gross said.”If more than 2 percent, a stronger dollar would affect emerging market growth and lead to perhaps premature tightening on the part of the ECB (European Central Bank) and other developed market central banks,” Gross warned.
 
Source: businessinsider.com



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