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Jeffrey Gundlach’s Take on the Federal Reserve

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Nov. 20 2020, Updated 5:32 p.m. ET

Jeffrey Gundlach’s interview with CNBC

Prominent bond investor Jeffrey Gundlach is the founder of DoubleLine Capital. In a recent interview with CNBC’s Halftime Report on Wednesday, March 15, 2017, Gundlach shared his view on the following:

  • how the Fed is operating and what the path for the interest rates will be
  • how bond yields are moving
  • the stock market and how President Donald Trump’s policies could impact market movement
  • European sovereign bonds
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Gundlach on the Fed

On March 15, 2017, after the Fed declared a rate hike of 25 basis points, the market (SPY) (QQQ) reacted positively. Jeffrey Gundlach said that the Fed indicated interest rates could continue to rise gradually.

Earlier, Jim Grant, the founder and editor of Grant’s Interest Rate Observer, spoke about the central bank’s movement in an interview with CNBC. He said, “I think the central banks are busy chipping away at the unwarranted faith in their pretense.” He also said that markets (VFINX) (IVV) (IWM) were losing confidence in central banks. He is a great critic of the Fed’s ZIRP (zero-interest rate policy).

After the meeting on March 15, 2017, Fed chair Janet Yellen said that “the economy is doing well.” Consumers played an important role in the rate hike. Improvement in consumer spending and the inflation index helped policymakers decide that the economy (VFINX) (IWM) (VOO) was healthy enough for a rate hike.

In the next part of this series, we’ll analyze Jeffrey Gundlach’s view on the bond market.

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