MarketPR
The pace of Federal Reserve rate hikes is in focus after investor Jeff Gundlach told CNBC that the central bank should have raised rates by half a percentage point rather than a quarter point.
His argument rests on rising inflation, which he said demanded a more aggressive policy response than policymakers provided. The half-versus-quarter distinction matters for anyone watching the rate setup.
A quarter-point increment signals gradualism. A half-point move signals urgency.
Gundlach's point, made directly to CNBC, is that the Fed read the inflation signal as calling for the former when it should have called for the latter.
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