Gundlach Says December Rate Hike a Threat to Stocks, Bonds
- A Fed move will hurt economy and cause volatility, he says
- Odds of a December Federal Funds rate increase stand at 66%
Jeffrey Gundlach.
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A December interest rate increase would threaten U.S. stock and bond markets while potentially driving up the value of the dollar to the point where it weakens the economy, according to Jeffrey Gundlach, chief executive officer of DoubleLine Capital.
“I have a hard time believing a Fed tightening will help the economy,” Gundlach, whose Los Angeles-based company manages about $80 billion, said Monday on a conference call with investors. “I think volatility will increase and the economy will weaken.”