Gross: US must focus on job creation not deficit reduction

PIMCO's Bill Gross has warned the US authorities are focusing too much on reducing the budget deficit instead of tackling the country's unemployment problem, which could derail the recovery.

The manager of the world's largest bond fund said the US government will have to reverse its economic stance to focus on stimulating growth and dealing with a 20m jobs void over the next decade. In order to remain on the path to recovery path, the US needs to focus on job creation instead of fiscal tightening and budget reforms, he added. "Admittedly, those reforms are long-term requirements for a stable and healthy economy, but the move towards it, in fact, if implemented too quickly, could stultify economic growth." Gross said politicians are mistakenly equating fiscal conservati...