Jeff Gundlach, a billionaire investor, thinks the US economy is about to go into a recession.
If you think raising interest rates will make things worse, it's your intention. The non-recession case is not likely to have much of a chance.
The Fed raised interest rates by 75 basis points on Wednesday to combat inflation. He doesn't think it was enough to bring consumer prices down.
Inflation accelerated at a faster pace than expected. It is the highest rate since December 1981 as food and fuel prices go up.
Prior to the Fed's decision, Gundlach said that the benchmark interest rate should be lifted to 3%, calling for a much larger hike than what most experts or economists suggest.
The DoubleLine CEO made a case for a weak US economy during his interview, saying it was startling to hear that people think it's strong.
Everyone talks about how strong the economy is. GDP was negative in the first quarter and has been negative for the last few months Where is the strongest economy?
The risks to the housing market are related to rising borrowing rates. "It's pretty obvious that these higher mortgage rates, which have doubled in just the past several months, are going to cut into things."
The average price per gallon of fuel has rocketed past a record $5, according to Gundlach.
Gundlach said he thinks the Fed won't be able to navigate a soft landing, as well as labeling Powell a short termist. He said that he took from Powell's comments that he's becoming very short termist and data dependent.
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