Devoted to Managers and those that seek to improve their management skills

Bill Gross, who manages the $104 billion Pimco Total Return Fund, the largest bond fund in the world, says while saying there will be a recession creates headlines, he believes the economy will grow at a 1-2 percent rate for some time.

"A recession forecast makes headlines. I'm not about to go there. But I do think that the U.S. economy is going down into the 1-2 percent category for a long time," Gross said in an interview.

Concerning interest rates, Gross added he believes the the Federal Reserve  will have to drop its key fund rates to somewhere in the 3 percent range because of the weakness in the economy. He cites the housing mortgage issues as the key motivator of the drop.

Some Federal Reserve Bank heads have said there's no guarantee there will be a rate cut September 18.