Legendary investor Bill Gross doesn't see inflation getting back to the Fed's target of 2%. The Bond King sees inflation stabilizing between 3 to 4% and thinks the country's growing deficit will make it hard for the Fed to ever get back to 2%.

I don't think there's much of a chance to get back to 2% absent a severe deflation which I don't see at the moment. I think policymakers come to the rescue but it's a 3 to 4% environment going forward, for me. The problem is that we have substantial deficits and as I mentioned before, the deficits probably increase year by year as we move along the decade. The problem also is that the FED is still providing substantial liquidity to the markets. Yes, real interest rates are high, but it's going to be a hard slog to move back down to 2%. I think Powell knows it. They talk it, but I think 3% is an objective goal going forward.