'Bond King' Jeff Gundlach says the Fed's devotion to big rate hikes means there's now a 75% chance of a US recession next year

There's a 75% chance that the US economy will go into recession because of the Federal Reserve's commitment to cooling inflation.

The US central bank raised interest rates by 75 basis points for the third time in a row as it tries to cool the high inflation that is rippling through the economy The hike is three times larger than the Fed's normal rate rise.

The Fed should have acted sooner. There are lags in the monetary policy. On Wednesday, Gundlach spoke to CNBC.

We have been tighter for a while. He said that the impact of the tightenings will cause a recession.

The Fed should slow down on the rate hikes.

The Fed's interest rate increases are likely to hurt the economy and lead to a recession, according to Jeffrey Gundlach, the 'Bond King'.

"I do think the unemployment rate is going to go up, and I do think we're headed to a recession, and I think the Fed should have pasted this differently," he said.

The chances of a recession in 2023 are very high because they're so committed to this 2%. I think they should be at 75%.

The Fed is trying to get inflation to 2% by raising interest rates in order to discourage borrowing and make it harder for people to pay their bills. The US inflation rate cooled slightly in August, but was still higher than expected.

The rate rise in September is three times larger than usual and extends a streak of increases. The target rate for the fed funds is between 3% and 3%.

The Fed expects the target rate to be 4.5% at the end of the year. It is possible that policymakers will make another 75-basis-point hike in November and another 50-basis-point hike in December.