Bond King Bill Gross says the Fed has already reached optimal level of interest rates

Pimco cofounder Bill Gross (Credit: Patrick T. Fallon—Bloomberg/Getty Images)

With the U.S. inflation rate starting to trend down, the debate has inevitably shifted toward when the Federal Reserve should call it quits with interest rate hikes, and a legendary bond investor just warned that the central bank is running the risk of overshooting its targets.

While U.S. inflation has shown some positive signs of normalizing recently, the Federal Reserve, architect of the six interest rate hikes this year that many have feared risk throwing the economy into a recession, appears to have no intention of stopping soon.