(Bloomberg) — Jeffrey Gundlach, the CEO and chief investment officer of DoubleLine Capital, tells CNBC in an interview that the Federal Reserve shouldn’t raise rates anymore after today but he believes there will probably be another 25 basis points increase.
(Bloomberg) — Jeffrey Gundlach, the CEO and chief investment officer of DoubleLine Capital, tells CNBC in an interview that the Federal Reserve shouldn’t raise rates anymore after today but he believes there will probably be another 25 basis points increase.
Gundlach also added that a recession is coming, saying there is a better than 75% probability that the economy falls into one. He points to the many recessionary indicators which he says are evident and notes the economic conditions are “very late cycle.”
In regards to inflation, Gundlach is skeptical on the view that inflation will stop at 2% once it gets going on the downside, calling it “completely implausible” that the rate would go sideways after reaching that level. Furthermore arguing that the inflation rate could fall faster than most believe and may even go to zero. He believes the bond market has “completely priced in the fact that inflation” has peaked and is receding.
Turning to the S&P 500, he says it seems like “everyone” has factored in a target of 4250 but he doubts that high level is met given the current economic situation.
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