Jeff Gundlach says the Fed should have hiked rates by more to fight rising inflation
The Fed should have hiked rates by half percentage point rather than a quarter, the investor told CNBC.
TL;DR
- Jeff Gundlach advocated for a 50-basis point rate hike, not the 25-basis point increase implemented by the Fed.
- He believes a larger hike would have provided a "truing up" to the Fed funds rate, which he noted was significantly below the 2-year Treasury rate.
- Gundlach expressed concern that the U.S. inflation problem is not being fully recognized.
- He found Federal Reserve Chairman Kevin Warsh's press conference to be "thin" and "opaque."
- Gundlach disapproved of Warsh's plan to bring in task forces, likening it to a troubled company hiring consultants.