Jeffrey Gundlach of DoubleLine says the Federal Reserve has lost control

(Reuters) – Jeffrey Gundlach, chief executive of DoubleLine Capital, said on Tuesday that the US Federal Reserve had lost control of interest rates, as evidenced by the federal funds rate curve, higher than any other element. of the US Treasury yield curve.

"What else do you need to call it a reversal?" Gundlach said during a phone interview. "Everyone is analyzing all these little arbitrary things. But we have an inversion. "

At approximately 1.55% and 2.03%, the yield on 10-year and 30-year Treasury bonds, respectively, is below the federal funds target rate of 2.25% to 2.5%. . The yield on the two-year Treasury Note is currently around 1.51%.

Three weeks ago, US Federal Reserve Chairman Jerome Powell called the US central bank's first rate cut since 2008 a mid-cycle policy adjustment, implying that the move was not not the beginning of a long series of rate cuts.

Gundlach, who manages more than $ 140 billion in assets, told Reuters last week that Powell's message to markets was inconsistent. He said that Mr. Powell "can not put together a coherent and coherent message. It's different at every meeting: the mid-cycle adjustment statement will not hold.

Powell could use the Jackson Hole Symposium on Friday to clarify whether the Fed is at the beginning of a rate reduction cycle or whether it intends to cut its budget a few times to protect itself against a possible slowdown.