by Everett Rosenfeld and Christine Wang
Central banks are “out of control” because they don’t understand the consequences of their own policies, according to Jeffrey Gundlach, the chief executive officer at DoubleLine Capital.
Speaking with CNBC’s “Halftime Report” on Friday, the bond guru projected that markets are actually likely to see another round of negative interest rates before central bankers realize they aren’t working and that fiscal stimulus may be the better option.
“The policies that they’re implementing don’t have the consequences that they’re looking for,” he said.
Chief among those policy mistakes, Gundlach said, is negative rates.