(Bloomberg) — U.S. inflation may approach 10% this year, according to DoubleLine Capital’s Jeffrey Gundlach, a historic level that he said underscores the need for the Federal Reserve to aggressively tighten monetary policy even amid fresh uncertainty caused by Russia’s war in Ukraine.
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“Their job is to fight inflation,” the billionaire money manager said of the Fed during a web presentation Tuesday. “They’ve done a terrible job of it so far.”
Gundlach, 62, said he expects the central bank to raise interest rates by a quarter of a point at its March meeting, and sees the consumer price index rising to at least 9% before reaching a peak. Inflation may end the year as high as 7.5%, Gundlach said, with surging prices leading to “demand destruction” as food and energy soak up more of household budgets.
The economic outlook is “substantially…
