CEO of DoubleLine Capital, Jeffrey Gundlach in an interview with CNBC, expressed his dissatisfaction with the Fed and announced that the market is still bearish.
Wapner: Were you surprised by FED's more dovish position on Wednesday?
Gundlach: I think it's normal to be surprised. I predicted that this year they would stop at zero, instead of two, and all told me that there was no way for that to happen. But the FED even went beyond!
And what the hell means an increase in interest rates in 2020? It seems that the FED are desperate.
Their rhetoric of "we'll fix the situation" has changed to "we'll have to check our data." This is not very convincing.
Wapner: Do you still think we are in the bear market, or will the FED retreat change the game?
Gundlach: Yes, we are still in the bear market. In 2007, the FED changed its mood from "bending to tightening" to "extraordinary measures" in just a few weeks. The S & P has grown only to form a double peak that will develop in the coming weeks.
The current situation is more metaphoric than hawkish sentiment in December.
Fed claims that cheap oil has killed their motivation. Oil has been up significantly since the meeting in December.
Why do not they tell the real reason behind their actions, which actually fills the facts?
You can say that Trump was pressured. You can say that worries from Europe or China are a strong signal, or you blame the yield curve, retail sales or GDP. But stop by "throwing dust in your eyes".
Source: CNBC
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