Gross: US has failed to make a dent in the deficit

PIMCO's Bill Gross has slammed US policymakers for their failure to make a significant dent in the country's $1.5trn deficit, despite reaching an accord on the debt ceiling.

The manager of the world's largest bond fund said although the US managed to avert a default disaster, the country's reputation has been "stained by the government's budgetary abuse." "The whole world was watching, and what they saw was a dysfunctional government taking its country to the financial precipice and backing off at the very last moment."  Meanwhile he warned deficit estimates of 7% to 8% of GDP for the next two years rely on figures of more than 3% growth, which PIMCO's New Normal research team expects to be closer to 2%. If this is the case, "deficits move right back u...