Fed Will Raise Rates 1 or 2 Times This Year, Says Bill Gross by Reuters @FortuneMagazine April 11, 2016, 4:55 AM EDT E-mail Tweet Facebook Linkedin Share icons Bond manager Bill Gross predicts that the U.S. Federal Reserve will raise interest rates once or twice in 2016, according to an interview in Barron’s. Gross, who is the manager of the Janus Global Unconstrained Bond Fund, told Barron’s that he does not expect U.S. Treasury yields, which are currently around 1.7%, to change dramatically this year. The 71-year-old portfolio manager said he sees investment opportunities in merger arbitrage situations, such as Berkshire Hathaway’s brk.a acquisition of Precision Castparts last year or Anheuser Busch InBev’s bud planned acquisition of rival SABMiller sbmry . Additionally, Gross said he likes closed-end funds such as the Nuveen Preferred Income Opportunities Fund and the Duff & Phelps Global Utility Income Fund. Gross, a billionaire, is currently embroiled in a lawsuit with his former employer, Pacific Investment Management. The company, known as Pimco, said Gross’ abusive conduct and effort to sabotage colleagues he deemed disloyal gave it “good cause” to oust him, and not pay any of the more than $200 million of damages he now seeks in the suit.