Jeff Gundlach, founder of DoubleLine, criticizes the Federal Reserve’s decision to raise rates by only 25 basis points on Wednesday, arguing that a 50 basis point hike would have been more appropriate. According to the bond investor, the 2-year U.S. Treasury yield was trading more than 100 basis points above the Fed funds rate, which would have justified a larger adjustment. Gundlach also described the post-decision press conference content as thin and opaque, while opposing the use of task forces to evaluate the Fed’s operations, comparing it to a struggling company calling in consultants. The Dow Jones Industrial Average fell approximately 700 points during late afternoon trading.
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