PIMCO's Gross Sees Fed Funds at 3% by Midyear
By Reuters | 08 Jan 2008 | 02:13 PM ET Font size: The Federal Reserve will cut lending rates aggressively in the first half of 2008 as the United States faces a possible recession, PIMCO fund manager Bill Gross said in an investment outlook posted on Tuesday.
Bill Gross
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The federal funds rate, the Fed's key policy tool, will likely be cut to 3 percent by mid-year, said Gross, chief investment officer of Pacific Investment Management Company, in Newport Beach, California.
The Federal Open Market Committee has cut the funds rate by 100 basis points since mid-September, to 4.25 percent