The CEO of investment firm DoubleLine Capital LP, Jeffrey Gundlach, told CNBC on Wednesday in an interview, that if the Federal Reserve continues down the aggressive rate hike path, these monetary policy tightenings will "cumulate into a recession."
"The monetary policy has legs that are long and variable. But we’ve been tightening out for a while. I think the Fed should be slowing down on these rate hikes," Gundlach said, adding that the American central bank "should have done more earlier."
Gundlach stated that he believes the "odds of a recession in 2023 are... at 75%." He underlined that the current inverted yield curve, which has been notable between the 2-year and the 10-year US Treasury notes in recent time, is "truly flashing red for economic problems."
