Arabic version: غوندلاش يشكك في قرار الاحتياطي الفيدرالي تثبيت أسعار الفائدة

According to Cnbc, DoubleLine founder Jeff Gundlach said the Federal Reserve appears behind the curve after leaving interest rates unchanged at its October meeting. Speaking on CNBC’s “Closing Bell” on Wednesday, Gundlach questioned why the central bank was not moving rates higher following comments from Fed Chairman Kevin Warsh about a strong macroeconomic environment.

“What are you waiting for? You just upgraded the economy right here,” Gundlach said, referring to Warsh’s press conference remarks. He pointed to headline consumer-price inflation approaching a 4% level and said the commodity index was rising in a bull market. “I don’t understand why the Fed so reluctant to move,” he said.

The Fed had raised rates by 25 basis points at its September meeting before pausing in October. Gundlach had previously said the central bank should have increased rates by 50 basis points rather than moving gradually across several meetings. On Wednesday, he said the Fed was “a little bit behind the curve.”

Gundlach noted that the 2-year Treasury note was trading at 4.7%, above the federal funds rate range of 3.75% to 4%. He said that gap indicated the Fed needed to raise rates further. CME’s FedWatch tool showed an 85% chance of a 25-basis-point increase at the Fed’s December meeting.

The central bank said it would use incoming information to determine the appropriate policy needed to return inflation to its 2% goal. Gundlach said that, absent a decline in oil prices, the Fed would have to raise rates in December. Warsh also said one 2027 meeting and two 2028 meetings would focus on monetary-policy strategy without a vote on the federal funds rate. Gundlach said he favored reducing rate-setting meetings to six starting immediately.