Economics
Gundlach Says the Fed Might Regret Raising Rates
- `We're looking at some real carnage in the junk-bond market'
- Central bankers could end up in a `conundrum,' manager says
DoubleLine CEO Jeffrey Gundlach
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Jeffrey Gundlach, whose $51.3 billion DoubleLine Total Return Bond Fund has outperformed 99 percent of peers over the past five years, said the Federal Reserve may come to regret raising U.S. interest rates amid signs of a fragile economy and a crumbling credit market.
The Fed is likely to find itself in a “conundrum” in a year or two if it raises rates amid economic trouble, Gundlach, chief executive officer of Los Angeles-based DoubleLine Capital, which manages about $80 billion, said during a webcast Tuesday. The central bankers appear “hell-bent” on lifting rates despite weak economic signals such as gross domestic product, he said.