DoubleLine’s Gundlach: Fed ‘straddled the problem rather than threaded the needle’

Jeffrey Gundlach argued that Jerome Powell ‘put the kibosh’ on the market hopes for a dramatic pivot, with the top Fed policymaker instead replacing it with the idea of ‘a plateau of quite some time’ for interest rates. The billionaire added that he sees inflation coming down in 2023, which should encourage the Fed to moderate its ultra-hawkish policy. Earlier in the day, the Fed raised its key rate by 75 basis points, the fourth consecutive meeting to include a rate hike of this size. In his post-announcement press conference, Powell opened the door for more modest rate increases going forward but also stressed his belief that the central bank has’more ground to cover’ to get inflation under control. . . .