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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 “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.

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