Should Central Banks Act More Hawkish?
Jeffrey Gundlach said there’s a 50 percent chance the Federal Reserve will raise interest rates this year. Yields will rise over the next decade, said Gundlach, the chief executive of DoubleLine Capital LP in Los Angeles, in a webcast Thursday. Traders are scaling back forecasts for a Fed move in 2016 as U.S. inflation falls short of the central bank’s target. Futures contracts indicate the odds are in line with Gundlach’s call, plunging from more than 90 percent in January. Some investors say the Fed will be on hold all year. Two regional Fed presidents usually on opposing sides of the policy debate made separate but similar cases Thursday for a rate increase. Bank of America Merrill Lynch Director of G10 FX Strategy discusses interest rate possibilities with Bloomberg's Francine Lacqua on "The Pulse."
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40:17 - Guests include: Terry Haines, Evercore ISI senior political strategist, Kevin Rudd, Asia Society Policy Institute president, and Narayana Kocherlakota, former Minneapolis Fed president. (Source: Bloomberg)