Gundlach Says Fed Should Have Raised Rates by 50 Basis Points

Gundlach's critique lands less on the size of the hike than on the Fed's communication, and the 2-year Treasury yield sitting well above the fed funds rate is the concrete signal that parts of the curve disagree with the policy path. That gap matters for rate-sensitive sectors and for anyone pricing the front end, since it implies the market is already positioning for more tightening than the Fed delivered. Whether that spread narrows or widens after the next meeting is the open question.