# Gundlach: Fed should have hiked rates harder

> The prominent bond investor says a half-point rate increase would have better addressed inflation concerns.
- Title: Gundlach: Fed should have hiked rates harder · CNBC | Shortify
- Summary: The prominent bond investor says a half-point rate increase would have better addressed inflation concerns. Jeff Gundlach believes the Federal Reserve's…
- Keywords: jeff gundlach, federal reserve, interest rates, inflation, doubleline, fed funds rate, treasury yields, monetary policy, kevin warsh, bond markets, business, finance
- Source: CNBC — https://cnbc.com/2026/09/16/gundlach-bonds-fed-rate-hike.html
- Author: Alex Harring
- Published: 2026-09-16T19:38:10+00:00
- Read time: 1 min
- Topics: jeff gundlach, federal reserve, interest rates, inflation, doubleline, fed funds rate, treasury yields, monetary policy, kevin warsh, bond markets, business, finance
## Gundlach wants bigger rate hike
Jeff Gundlach, founder of DoubleLine, says the Fed should have raised rates by half a percentage point instead of just a quarter point on Wednesday.

> I would have called that stun and done.
## Treasury rates signal Fed is behind
The 2-year Treasury yield sits more than 100 basis points above the Fed funds rate, suggesting markets expect higher rates ahead. Gundlach says the 2-year Treasury "leads" the Fed.
## Inflation not being fully respected
Gundlach worries the U.S. inflation problem may not be getting the serious attention it deserves from policymakers.

> I worry that the inflation problem facing the U.S. may not be "fully respected."
## Warsh's press conference falls flat
Fed Chair Kevin Warsh's post-decision remarks were "pretty thin" and "opaque," according to Gundlach. The Dow fell 700 points during and after the conference.

> I thought the content was pretty thin.
## Task forces won't solve Fed problems
Gundlach criticized Warsh's plan to bring in task forces to evaluate Fed operations, comparing it to a struggling company hiring consultants to tell them what they want to hear.

> It's like a company that's having trouble that wants to hire consultants.
## Key takeaway

Jeff Gundlach believes the Federal Reserve's quarter-point rate hike was insufficient to combat rising inflation and that a larger increase would have been more appropriate.