{"id":23905,"date":"2017-03-08T05:48:01","date_gmt":"2017-03-08T05:48:01","guid":{"rendered":"http:\/\/www.biphoo.com\/bipnews\/?p=23905"},"modified":"2017-03-08T05:48:01","modified_gmt":"2017-03-08T05:48:01","slug":"fed-make-sequential-hikes-something-breaks","status":"publish","type":"post","link":"https:\/\/www.biphoo.com\/bipnews\/business\/fed-make-sequential-hikes-something-breaks.html","title":{"rendered":"Fed to make sequential hikes until something breaks"},"content":{"rendered":"

\n\tFed to make sequential hikes until something breaks<\/span><\/span><\/strong><\/span>
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\n\tFed to make sequential hikes until something breaks:- Jeffrey Gundlach, chief executive officer at DoubleLine Capital, said on Tuesday he expects the Federal Reserve to begin a campaign this month of "old school" sequential interest rate hikes until "something breaks," such as a U.S. recession.<\/span><\/span><\/span>\n<\/p>\n

\n\tGundlach, who oversees more than $101 billion at Los Angeles-based DoubleLine, said U.S. economic data support a rate increase as soon as the next Fed policy meeting on March 14-15, and further rises this year, after a series of false starts in 2015 and 2016.<\/span><\/span><\/span>\n<\/p>\n

\n\t"Confidence in the Fed has really changed a lot," Gundlach said on an investor webcast. "The Fed has gotten a lot of respect with the bond market listening to the Fed" now that economic data support the tough rhetoric from Fed officials.<\/span><\/span><\/span>\n<\/p>\n

\n\tNew York Fed President William Dudley, whose branch of the U.S. central bank serves as its eyes and ears on Wall Street and who generally spends a couple of hours a week planning policy with Fed Chair Janet Yellen, played a key role in orchestrating the messaging of a March rate hike.<\/span><\/span><\/span>\n<\/p>\n

\n\tDudley gave markets an initial jolt when he said in a television interview last week that "animal spirits had been unleashed." Dudley also said the case for tightening monetary policy "has become a lot more compelling" since the election of President Donald Trump and a Republican-controlled Congress.<\/span><\/span><\/span>\n<\/p>\n

\n\tGundlach, known on Wall Street as the "Bond King," said on the webcast that inflationary pressures are increasing as well as business confidence, which will translate into a stock market that will "grind higher."<\/span><\/span><\/span>\n<\/p>\n

\n\tBut Gundlach, who repeated his warning Tuesday that U.S. stocks are not cheap, said he holds Treasury inflation-protected securities and gold against this economic backdrop.<\/span><\/span><\/span>\n<\/p>\n

\n\tGundlach added that a short position on German 10-year bunds was "a hell of a lot smarter than going long" the securities. As for financial stocks, Gundlach told Reuters in an interview that he sold his stake in <\/span><\/span><\/span>bank<\/span><\/span> and financial shares because "the easy money has been made."<\/span><\/span>\n<\/p>\n

\n\tSource:- http:\/\/www.reuters.com\/article\/us-funds-doubleline-idUSKBN16E2X4<\/span><\/span><\/p>\n

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