Gundlach Says Fed’s 25 BPS Rate Cut Was the Right Move

DoubleLine Capital’s Jeffrey Gundlach tells CNBC in an interview he believes the Federal Reserve’s 25 basis point cut was the right move.

• Gundlach adds that he thinks the US dollar is going to continue to decline
  • Biggest opportunity to watch for is lower dollar trend
• He says that there could be some pressure on credit spreads and that there is also a risk of over-easing
• Gundlach notes that the risk of higher inflation should not be discounted and that the yield curve will keep steepening until manipulated
• He also says the divergence of views at the Fed is “remarkable”

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