"Old Debt King" Gross: The Fed should stop QT and cut interest rates as soon as possible

Bill Gross, the "king of bonds", has some advice for the Fed: stop shrinking its balance sheet now and start cutting interest rates in the coming months to avoid the economy falling into a recession. "I'm going to stop quantitative tightening," the co-founder and former chief investment officer of PIMCO said when asked what would have been a different approach if he had led the Fed, "and it's not the right philosophy and policy to continue quantitative tightening at this point in time." Gross said the Fed is "not doing well" and should cut Intrerest Rate to avoid a deep recession, and that the Fed should cut rates in the next six to 12 months. Wall Street is closely watching the timing of the Fed starting to cut its BenchmarkIntrerest Rate. The Intrerest Rate is now at its highest level in more than 20 years. Some Derivatives traders remain hopeful of a rate cut as early as March. Fed officials will hold their next meeting on January 31. "Real Intrerest rates are too high," Gross added.