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Gundlach to Summers Side With Bond Market Against Fed Rate Path

  • Policy makers forecast four interest-rate increases in 2016
  • Derivatives traders expect only two hikes amid oil-price rout
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Jeffrey Gundlach and Larry Summers are joining derivatives traders in saying the Federal Reserve is too ambitious in its plans to raise interest rates against a backdrop of slowing global economic growth.

Gundlach, the co-founder of DoubleLine Capital LP, said moves by the central bank to raise rates are fighting non-existent inflation and hurting gross domestic product growth. Summers, the former Treasury secretary, said the economy can’t withstand the four rate increases that policy makers project this year.