The Federal Reserve has kept interest rates near 0% since December 2008 in its emergency effort to stimulate growth and inflation in the wake of the global financial crisis.
And for months, the Fed and Chair Janet Yellen have signaled explicitly that a rate hike would come soon. This has some leading economists forecasting that an initial rate hike will be announced at the Fed's September 16-17 Federal Open Market Committee (FOMC) meeting.
However, DoubleLine Funds' Jeffrey Gundlach thinks that a rate hike now would be hasty.
“Look at the charts," Gundlach said. "Dammit, Janet, don’t raise rates!”
Gundlach was referencing The Rocky Horror Picture Show with that quote. And to be clear, the investment strategies of DoubleLine's portfolios don't hinge on the timing of the Fed's rate hikes. Rather, Gundlach's view is that tightening in September risks hurting the economy.
As he's been predicting for quite a while, Gundlach believes the Fed is more inclined to hike later than sooner.
During a webcast on Tuesday, Gundlach shared a slew of market and economic stats and trends that would argue against a rate hike in September or any time this year.
Note: The slide titles are not Gundlach's quotes.
SEE ALSO: We're about to find out how closely the Fed follows its unspoken rule
"Dammit, Janet!" is a reference to The Rocky Horror Picture Show.
The futures market is putting a 30% probability that the Fed hikes rates on September 17. In other words, the market would be surprised by a rate hike.
And that probability has been falling all year.
See the rest of the story at Business Insider