Jeffrey Gundlach said it's 'very likely' that the Federal Reserve will raise interest rates by half a percentage point at its next policy meeting.
DoubleLine Capital CEO Jeffrey Gundlach said it's "very likely" that the Federal Reserve will raise interest rates by half a percentage point at its next policy meeting. "After Powell's testimony today, the chances of a 50-basis point increase have gone up a lot in the betting markets," Gundlach said Tuesday during a DoubleLine investor webcast. "We've had a very large increase in short-term interest rates and a further inversion of the yield curve. ...
"It's now corroborating the idea that the Fed will probably take the Fed funds rate up to 5% at the upcoming meeting," Gundlach said. The probability of a half-point increase rose to 70.5% Tuesday evening, according to CME Group data. That's up sharply from 31.4% just a day ago. The Federal Open Market Committee's two-day meeting begins on March 21. "The only way that won't happen is if the employment data and the unemployment rate ... surprises to the downside.
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