Bill Gross, who used to run the world’s largest bond fund before joining Denver-based Janus Capital Group in September, said the Federal Reserve may become more “dovish” after oil prices plunged in recent weeks.
The Federal Reserve would have to take lower oil prices “into consideration,” Gross said Friday
. “I think that yes, it moves toward a dovish stance relative to what the market expected a few days ago.”
Benchmark U.S. oil prices have fallen below $60 a barrel, extending losses Friday as the International Energy Agency cut its global demand forecast for the fourth time in five months. Gross said with inflation showing no signs of approaching the Fed’s 2 percent target, policy makers won’t be in a hurry to raise interest rates.
The sharp decline in the price of oil has disoriented markets and changed the perception of the creditworthiness of companies and countries, Gross said.
