Submitted by Taps Coogan on the 24th of April to The Sounding Line.
Jeffery Gundlach, founder of DoubleLine Capital LP, recently gave a wide ranging interview to CNBC in which he discusses the possibility for a rise in commodity prices and interest rates, tightening yield spreads, and concerns about the prospect for a Fed induced recession.
With regard to the Fed, Gundlach notes:
“The Fed is back into a variant of their old school mode where, 10 or 12 years ago, they were hiking at every meeting and they do it until something breaks. Now they’re doing it once a quarter but they seem inclined to do it until something bad happens, and don’t forget, they are doing it at the same time that we’re ramping up quantitative tightening. So we have this double-barreled Fed thing and I think that that is something to be worried about. The Fed has gone from a mode of ‘we will raise rates when the data gets better’ to a mode of ‘we will raise rates unless the data gets worse,’ and so that puts them into that sort of semi-autopilot mode, which in the past has led to problems…”
There is much more to the interview, so enjoy it above.
P.S. If you would like to be updated via email when we post a new article, please click here. It’s free and we won’t send any promotional materials.