The Fed chief made clear last week that he's now no longer singularly focused on crushing inflation.
Gross said bonds are unattractive as the U.S. government deficit swells.
Pimco sees rising shipping costs as complicating Fed policy.
There remains a disconnect between how much easing the market expects and what policymakers consider likely.
The pullback underscores how confident investors are that the Fed has brought inflation back under control.
"Finance-based capitalism depends on a positive yield curve," the Pimco co-founder said.
The Fed chairman forcefully pushed back on hopes of a rate cut in March.
Bond yields tend to fall around the time of Federal Reserve meetings.
The central bank should lower interest rates over the next six to 12 months, he said.
Traders said retail sales have been too buoyant to figure in fast rate cuts in the short term.