Bond king Gundlach says the Fed should not do more rate hikes after the latest increase

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Bond king Gundlach says the Fed should not do more rate hikes after the latest increase
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DoubleLine Capital CEO Jeffrey Gundlach said the central bank will be 'highly encouraged' by the inflation data in the next six months.

DoubleLine Capital CEO Jeffrey Gundlach said he believes the Federal Reserve should stop raising rates after the latest hike as the economy is already weakening. "I think they should not do any more hikes after today," Gundlach said on CNBC's " Closing Bell Overtime " Wednesday, adding that the central bank might do one more 25-basis-point rate increase.

With the economy weakening, I think the inflation rate is going to fall faster than most economists do." Prior to Wednesday's rate hike, the Fed had executed a string of four straight three-quarter point hikes, the most aggressive policy moves since the early 1980s. The Fed's median forecast showed that it will hike rates to as high as 5.1% in 2023 before the central bank ends its fight against inflation.

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