Gross Sees Limitations

Bond expert Bill Gross of Pimco thinks the Federal Reserve will cut short term interest rates to two percent,but there's a certain point beyond which it doesn't help the economy.Lower and lower interest rates produce a weaker and weaker U.S. dollar,causing global inflation.The bond markets on a global basis are afraid of inflation.U.S. Treasury bonds are perhaps the most overvalued asset in the world.Mr.Gross likes corporate bonds with AA or AAA ratings,such as General Electric(GE) or JP Morgan Chase(JPM).