Bill Gross now manages the Janus Global Unconstrained Bond Fund. Photo: AP

(Bloomberg) — Bill Gross, the former manager of the world’s largest bond fund, said the U.S. Federal Reserve must be “very careful in their moves” and needs to see a nominal growth rate of 4 percent to 5 percent before raising interest rates.

All central banks have to be cautious, but the U.S. especially, because “they’re the first one to get off the dime,” the former chief investment officer of Pacific Investment Management Co. said in a Bloomberg Radio interview on Friday. “This is a highly levered economy buffered by structural headwinds,” said Gross, who left Newport Beach, California-based Pimco in September to join Janus Capital Group Inc.

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