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Bill Gross says slow unwind of zero rates will support US stocks, bonds

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Bill Gross, the closely watched bond investor, on Thursday said the Federal Reserve will begin to raise US interest rates slowly this year to normalize distortions in the financial markets but that bonds and equities won't be vulnerable to huge sell-offs.

[NEW YORK] Bill Gross, the closely watched bond investor, on Thursday said the Federal Reserve will begin to raise US interest rates slowly this year to normalize distortions in the financial markets but that bonds and equities won't be vulnerable to huge sell-offs.

Mr Gross, who oversees the Janus Global Unconstrained Bond Fund, said the Fed "seem to now appreciate the hole that they have dug by allowing interest rates to go too low for too long. Despite reasonable growth, some of them recognize the system's distortion if only because inflation is going down, not up, in the process."

REUTERS