Billionaire investor Jeffrey Gundlach said the Federal Reserve is « very likely » to hike interest rates by 50 basis points at its next meeting.
Billionaire investor Jeffrey Gundlach has warned its « very likely » the Federal Reserve will go for outsized interest-rate increases as the US economy remains too hot.
The so-called « Bond King » was responding to Fed Chair Jerome Powell’s congressional testimony Tuesday where he signaled rates may rise « higher than previously anticipated » given recent strong economic reports. Data showing a tight US labor market and high consumer spending has fueled speculation the central bank will need to continue its policy tightening to bring inflation down.
« After Powell’s testimony today, the chances of a 50-basis point increase have gone up a lot in the betting markets, » Gundlach said Tuesday during a DoubleLine investor webcast, per CNBC.
« We’ve had a very large increase in short-term interest rates and a further inversion of the yield curve.
