Gundlach Tells CNBC No 75bp Rate Hike Next Time ‘As a Base Case’
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Jeffrey Gundlach, chief investment officer of DoubleLine Capital, tells CNBC a rate hike slowdown could be ahead and that he doesn’t see a 75bps rate hike at the Fed’s next meeting “as a base case”. Additionally, Fed Chairman Powell “kind of put the kibosh” on the idea of anything resembling a pivot.
In his view, the US inflation data will cool off in 2023, and if the Fed is successful in bringing down inflation to the 2% area by the end of next year, it will continue declining and would go well below 2%. “It is implausible” to think that inflation will halt at the 2% range and stay there. “It will go negative,” he says.