(Bloomberg) -- President Donald Trump is “crazy like a fox” for calling the Federal Reserve “loco” after U.S. stock markets plunged, according to Jeffrey Gundlach, chief investment officer of bond manager DoubleLine Capital.
“When it comes to President Trump, it's clear to me that he's being crazy like a fox with this Fed rhetoric where he doesn't want to take the blame,” Gundlach, whose Los Angeles-based firm oversees about $123 billion, said during an interview Thursday on CNBC.
Trump on Wednesday slammed the Fed as “going loco” and today said the central bank was “out of control” because it was unnecessarily raising interest rates and causing the stock market to fall. Gundlach said the Fed has taken too long to lift rates, which he expects to continue to rise as U.S. deficits increase following tax cuts and budget growth.
U.S. stocks were mixed a day after concerns over surging rates and trade tensions with China sparked the biggest selloff in eight months. Gundlach predicted in January that stocks would fall this year if Treasury yields climb too fast. He said in a Sept. 18 tweet that if rates on 30-year U.S. Treasuries closed for two straight days above 3.25 percent it would be a “game changer.” The gauge has exceeded that level since Oct. 3.
To contact the reporter on this story: John Gittelsohn in Los Angeles at johngitt@bloomberg.net
To contact the editors responsible for this story: Margaret Collins at mcollins45@bloomberg.net, Josh Friedman, Melissa Karsh
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