Jeffrey Gundlach of DoubleLine says the Federal Reserve has lost control

The Federal Reserve has lost control of interest rates, as evidenced by the exchange rate of federal funds, higher than any other element of the US Treasury yield curve, said Tuesday Jeffrey Gundlach, Managing Director of DoubleLine Capital .

"What else do you need to call it an inversion?" Gundlach said in 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," suggesting that the move was 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 consistent and coherent message.It is different at every meeting – the mid-cycle adjustment statement will not hold".

Powell could use the Fed's Jackson Hole Symposium on Friday to clarify its position on the fact that the Fed is at the beginning of a rate reduction cycle or that it just intends to reduce its rate of reduction a few times to cope with a possible slowdown.