NEW YORK ( TheStreet) -- Bill Gross -- the legendary bond-fund manager who co-founded Pacific Investment Management Co. -- expects the Federal Reserve to start raising interest rates this year, and he says it won't be as bad for stocks as some investors fear. 

In his monthly investment outlook, Gross, who's now a portfolio manager at Janus Capital Group, depicted global financial markets akin to the eponymous board game Monopoly.

While he says the careful normalization of Fed policy during 2015 won't lead to a massive selloff in equities or threaten bond values, he questions central banker's remedies to economic woes in recent years.

"Competitive devaluations and the purchase of bonds at near zero interest rates is indeed a significant distortion of the markets and -- more importantly -- capitalism's rules which have been the foundation of growth for centuries," Gross wrote.

Last week, the European Central Bank announced a $1.2 trillion bond stimulus package to combat sluggish growth and deflation in the eurozone. The Bank of Japan put forth a similar prescription last fall. The U.S. wrapped up its third installment of quantitative easing in October.

Gross said that Fed officials "seem to now appreciate the hole that they have dug by allowing interest rates to go too low for too long."

The fed-funds rate has remained near zero since December 2008. In Wednesday's first Federal Open Market Committee statement of 2015, the central bank said it can be "patient" when it comes to normalizing policy -- that is, pulling the trigger on its first rate hike since 2006.

It said the economy is moving at a "solid" pace and expects inflation to move back towards its 2% target in the medium term, despite the precipitous decline in oil prices during recent months.

Though Jerry Webman, chief economist at OppenheimerFunds told TheStreet in an interview: "You can't manage monetary policy based on commodity prices, even something as important as energy."

Instead, Webman thinks the Fed will be watching wage inflation and hiring more closely in the coming months.

-Written by Scott Gamm in New York.

Follow @ScottGamm.