Economics

Aggressive Rate Hikes Risk Cracking U.S. Economy, Gross Tells FT

Shoppers walk through the Urbanspace Union Square Holiday Market in New York, U.S., on Sunday, Dec. 12, 2021. The U.S. Census Bureau is scheduled to release retail sales figures on December 15.Photographer: Gabby Jones/Bloomberg

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By Adeola Eribake

March 19, 2022 at 12:11 PM UTC

This article is for subscribers only.

The U.S. could “crack the economy” if it raises interest rates beyond 2.5% to 3%, the influential bond investor Bill Gross has told the Financial Times.

Gross said that while inflation was reaching concerning levels, the Federal Reserve wouldn’t be able to slap on increases much beyond those levels.