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Gundlach Says Fed Is Mistaken in How It’s Ending Easing

Jeffrey Gundlach, manager of the $36 billion DoubleLine Total Return Bond Fund, said the U.S. Federal Reserve is making a “big mistake” in the way it ends its unprecedented asset-purchase program.

“We thought the Fed wouldn’t walk away from QE,” or quantitative easing, and would buy securities until targeted yields were reached like in Japan and Europe, Gundlach said yesterday during a webcast for DoubleLine Capital LP’s investors. Instead, the central bank is opting for a “seat of the pants” way of handling policy, said the manager, whose firm is based in Los Angeles.