Gross: Wake up world, low interest rates are the problem

Bill Gross has released his latest “Investment Outlook” where he focuses on global interest rates and geopolitics. He concludes that “There is no statistical reason per se for the Fed to raise interest rates, yet absent a major global catastrophe we are likely to get one in September. But the reason will not be the risk of rising inflation, nor the continued downward push of unemployment to 5%. The reason will be that the central bankers that are charged with leading the global financial markets – the Fed and the BOE for now – are wising up; that the Taylor rule (Definition: (VIEW LINK) and any other standard signal of monetary policy must now be discarded into the trash bin of history. Low interest rates are not the cure – they are part of the problem. (VIEW LINK)