Exclusive outtakes from industry leaders
AUDIO – Gross sees Fed cutting 25 bps, says mortgage rate needs to hit 5 pct
PIMCO’s chief investment officer Bill Gross told the Reuters Investment Outlook 2008 Summit he expects the Federal Reserve to announce a 25 basis points cut in the federal funds rate on Tuesday afternoon but says much more will be needed.
Gross, who was speaking about three hours before the decision will be announced, said that to put a floor under the U.S. housing market, the Fed will need to cut the rate to around 3 percent and will need to get the 30-year home mortgage rate for prime borrowers down to around 5 percent. The audio of his comments is attached.