Arabic version: غوندلاك يدعو إلى زيادة أكبر في أسعار الفائدة من الاحتياطي الفيدرالي

According to Cnbc, DoubleLine founder Jeff Gundlach said the Federal Reserve should have raised interest rates by a half percentage point on Wednesday rather than by a quarter point. Speaking on CNBC’s “Closing Bell,” Gundlach said he would have preferred a move he described as “stun and done.”

Gundlach said a half-point increase would have given the market a “truing up” to the federal funds rate. He said the two-year Treasury rate was more than 100 basis points above the Fed funds rate. The yield on the two-year U.S. Treasury, which tracks expectations for short-term Fed interest rates, rose around 7 basis points in Wednesday afternoon trading.

The bond investor said he was concerned that the U.S. inflation problem may not be “fully respected.” He said he would have made a 50-basis-point increase and then assessed incoming data. Gundlach said he had previously advocated for larger rate increases than those implemented by the Fed and argued that the two-year Treasury “leads” the central bank.

Gundlach said he was not surprised that stocks declined during Federal Reserve Chairman Kevin Warsh’s post-decision press conference. The Dow Jones Industrial Average fell 700 points in late-afternoon trading, with losses accelerating during and after the event. Gundlach called the press conference content “pretty thin” and later described the central bank chief as “opaque.” He also criticized Warsh’s push to bring in task forces to evaluate several aspects of the Fed’s operations.