Bill Gross, co-chief investment officer of bond fund giant PIMCO, told CNBC on Wednesday that the Federal Reserve will continue to keep its monetary policy accommodative for the next 2-5 years, calling it QE 2.5.

Gross said: Not only will the Fed eventually buy additional securities, but it will keep this policy rate constant at 25 basis points for two, three, four, perhaps even five years... It basically signifies that the front end of the curve -- the twos, threes, fours, and fives, will do very well.

(Reporting by Sam Forgione; Editing by Chizu Nomiyama)

Federal reserve Quantitative easing