Expect another rate increase by the Fed at its next meeting due to a “problematic” surge in oil prices, billionaire investor Jeff Gundlach said.
- “I think the probability of rate hikes is higher than what I thought before this oil spike happened,” Gundlach said.
- Oil prices have climbed past $90 a barrel after Saudi Arabia and Russia slashed production.
On Wednesday, the central bank kept interest rates unchanged at 5.25%-5.5%. While Gundlach anticipates a hike at the Fed’s next meeting, he added that the monetary authority is likely to ease policy in the first half of 2024.