DoubleLine Funds’ Jeffrey Gundlach just delivered a presentation titled ‘What Hath QE Wrought’ to investors at the New York Yacht Club.
Gundlach argued that as the Fed unwinds its monthly asset purchase program it is likely to inflict some pain on the U.S. economy.
Recently, there had been some chatter about interest rates rising faster than previously expected.
But the latest FOMC minutes stated that “several participants noted that the increase in the median projection overstated the shift in the projections.”
And that this should not be “misconstrued as indicating a move by the Committee to a less accommodative reaction function.”
Gundlach says that if the Fed can successfully unwind its quantitative easing (QE) program it would be one of the greatest discoveries of our time.
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