Friday Jobs Report 'a False Idol," Janus Capital's Bill Gross Tells Bloomberg TV
NEW YORK (TheStreet) -- Minutes from the Federal Reserve's June 14-15 policy meeting were released Wednesday afternoon, and revealed a focus on the upcoming July 8 jobs report.
Employment uncertainty is not important to Bill Gross, Lead Portfolio Manager at Janus Capital, who thinks the Fed is overemphasizing the upcoming jobs report.
"I think it is a false idol that [the Fed] focuses on so I wouldn't be as concerned no matter what the number is on Friday," Gross said on Bloomberg TV's "Bloomberg Markets".
The Fed's cautious approach to monetary policy is appropriate in Gross' view, especially when it comes to Brexit uncertainty. After the U.K. referendum to leave the European Union, Gross thinks the Fed must continue to watch some of the rippling effects in the U.S.
"Janet Yellen looks at the labor market, looks at the Taylor rule, looks at unemployment, and from those particular statistics infers that inflation is on the way," Gross noted before stating that he does not believe inflation is on the way. Gross thinks it is a mistake "to focus on that employment report" compared the macro structural elements such as Brexit, globalization, demographics, and high debt levels.
"Fed officials can pounce on whatever good number they like" but there is not enough "to produce credit growth that is necessary for even a subpar economy such as in the United States," Gross added.