Gross highlights four headwinds that will keep lid on growth

The manager of the world's largest bond fund has highlighted four structural headwinds that pose a risk to growth in developed economies such as the US.

In his monthly letter to investors, PIMCO's Bill Gross agreed with recent comments from Fed chairman Ben Bernanke that the US economy's growth potential had been reduced "at least for a time." However, Gross said Bernanke had not gone far enough in his forecast, warning the 'new normal' of 2% GDP growth which Bernanke expects to materialise is still too optimistic. Gross said: "There are numerous other structural headwinds that may reduce real growth even below the 'New Normal' 2% rate that Bernanke has just confirmed, not only in the US but in developed economies everywhere." Gros...