Here’s what could hurt the Fed’s credibility (and it just happened).

CNBC interviewed DoubleLine Capital CEO Jeffrey Gundlach, a partial report is here.

Reuters have a bit more from Mr. G also, from a phone interview. Gundlach makes very pertinent points indeed:
  • The Fed’s cautious stance on raising interest rates could backfire by creating uncertainty in the economy and hurt the U.S. central bank’s credibility
  • “This U-Turn – on nothing fundamentally changing – is unprecedented”
  • “Three months ago, we were on ‘autopilot’ with the balance sheet – and now the bond market is priced for a rate cut this year. The reversal in their stance is stunning.” 
Will try to dig up a link to Reuters for more….. here we are Reuters
I don’t always agree with what Mr. G says (but acknowledge he is the billionaire 😀 ) but hard to argue with his assessment on this.
CNBC interviewed DoubleLine Capital CEO Jeffrey Gundlach, a partial report is here.
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