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Gundlach doubts the Fed will push back against the turnaround story


(Bloomberg) — The Federal Reserve is likely to dismiss suggestions that it will stop raising interest rates soon and then start easing policy later this year, according to Jeffrey Gundlach, DoubleLine’s chief investment officer. Capital LP.

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The US central bank will meet on Wednesday and is expected to raise the benchmark by 25 basis points, according to a Bloomberg survey of economists. Gundlach’s comments come after BlueBay Asset Management’s Chief Investment Officer, Mark Dowding, earlier this week suggested the market was too quick to price in a dovish Fed.

Bonds and stocks both rallied at the start of the year as investors anticipate a significant drop in inflation that will prompt Fed Chair Jerome Powell to temper his hawkish stance after overseeing the strongest tightening cycle in years. one generation.

Gundlach said last month that investors should watch the bond market, not the Fed, to see where interest rates are headed. More than half of investors polled by Bloomberg last week agreed.

Bearish momentum sweeps through US interest rate markets just before the Fed

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