(Bloomberg) — DoubleLine Capital Chief Executive Officer Jeffrey Gundlach said the Federal Reserve should raise its target interest rate to 3% on Wednesday, calling for a hike that would be dramatically larger than what most forecasters are predicting.

Most Read from Bloomberg

  • China Alarms US With Private Warnings to Avoid Taiwan Strait

  • Volatility Grips Stocks as Treasury Yields Surge: Markets Wrap

  • Americans Are Building Vacation-Home Empires With Easy-Money Loans

  • Biden’s ‘Never Been More Optimistic’ Despite Troubled US Economy

  • Stocks’ Pandemic Bull Run Ends With Recession Fear: Markets Wrap

The outspoken bond manager’s suggestion, delivered in a Tuesday night tweet, compares with forecasts from traders and banks including Goldman Sachs Group Inc. that the Fed will raise by 75 basis points on Wednesday. That would lift the upper bound of the Fed funds target rate to 1.75%.

Markets started pricing in a 75 basis-point move following the New York Fed’s survey on Monday showing US consumers expect prices to rise even faster over the next year, as well as reports from the Wall Street Journal and other news outlets including Bloomberg News on the likelihood of such a move.

The Fed will announce a decision and publish fresh forecasts at 2 p.m. Wednesday in Washington.

Most Read from Bloomberg Businessweek

  • A Billion-Dollar Crypto Gaming Startup Promised Riches and Delivered Disaster

  • A Parisian General Store’s Radical Message for Its Customers? Buy Less

  • Amazon and Spotify Boost Podcast Offerings, and Audiences Soar

  • The IRS Is Coming for Your Venmo Income

  • Mexican Biologists Aim to Save Hummingbirds With Wildflowers

©2022 Bloomberg L.P.

(305) 707 0888
FREE water test Quick estimate