October 7, 2011

PIMCO’s Gross: Job Gains Not Enough for Growth

Bond king claims neither party has grasp on how to boost unemployment

Pacific Investment Management Co.’s Bill Gross said job gains in September weren’t enough to sustain growth in the U.S. economy. He also said it appeared neither political party understood what was needed to fix chronically high unemployment.

bill grossGross (left), manager of the world’s biggest bond fund, told “Bloomberg Surveillance” with Tom Keene and Ken Prewitt that “the economy needs 200,000 to 250,000 new jobs per month to expand.”

Bloomberg also reported global investors like Mitt Romney better than any other U.S. presidential candidate, while remaining cool to the Republican field in general, according to a Bloomberg poll.

“I don’t think Barack Obama has been very good for the economy and I don’t think Mitt Romney would be either; neither camp recognized the problem in terms of job creation,” Gross said when responding the poll. “We need to, yes, to have currency revaluations, which the Republicans are opposing. We need in some cases penalties, tariffs where applicable. We need a buy-American, produce-America type of policy in order to create jobs.”

Bloomberg notes payrolls climbed by 103,000 workers after a revised 57,000 increase the prior month that was more than originally estimated, Labor Department data showed Friday in Washington. The median forecast in a Bloomberg News survey called for a rise of 60,000. The gain reflected the return to work of 45,000 telecommunications employees. The jobless rate held at 9.1%.

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