Bond guru Bill Gross says he thinks economic growth will fall to 2% for the US, thanks to tumbling oil prices.

“Yes, we’re starting from a 3% growth economy that will probably persist for another quarter or so,” he told CNBC. “We get back to a relatively new structural growth rate, which is not 3 but probably 2 or even less.”

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Gross said the declining growth is the result of tumbling oil prices, which he says will be very difficult to stabilize. The oil declines hurt industries like fracking and determine currency movements, setting off a chain reaction, Gross says. “Then financial markets try and readjust,” he said. “Hedge funds reduce leverage and sell other positions.”

What does Gross think of the bond market? “I think high quality bonds are a safe bet, just not a high returning bet,” he said, adding that Treasury Inflation-Protected Securities “look great.”