Pacific Investment Management Co.
Gross, manager of the world's largest bond fund, wrote in a commentary on the company's website that PIMCO views a rate cut as likely to "do more damage than good from this point forward."
He added that "foreign and domestic investors are being fleeced" by the weak dollar and rising commodity prices. He supports the legislation backed by House Financial Services Committee chairman Barney Frank and Senate Banking Committee chairman Christopher Dodd in which the government would guarantee billions of dollars of precarious mortgages.
"Surely Republicans, Democrats, and Wall Street mortgage holders [PIMCO included] can recognize that stability as opposed to freefall market clearing is the better alternative, especially if the pain is shared by all parties," he wrote.