Gundlach now says the Fed won't hike
Ten days ago, DoubleLine Capital CEO Jeff Gundlach was all over the place warning the Fed could deliver a surprise rate hike on Wednesday.
"The Fed wants to show, at some point, that they can't be replaced by WIRP (World Interest Rate Probability). The only way they can do that is to tighten when WIRP is below 50," he told Reuters. "They want to show that they are not guided by the markets."
At the time, he said the probability needed to be at least 40% and the S&P 500 at 2150. The WIRP function showing the Fed hike odds at just 18% and the S&P 500 at 2143.
With those numbers, Gundlach today told Reuters there's not going to be a hike but he says the statement will include "hawkish no-hike language."
There's no word on Bill Gross, who said in early September that the chances of a Fed hike were close to 100%.
"September is on -- I don't think it's 100 percent on, but I think it's close to 100 percent," he said after the jobs report. "If these types of jobs don't do it, I'm not quite sure what does."
