DoubleLine Capital Chief Executive Jeffrey Gundlach still believes the U.S. Federal Reserve is unlikely to raise interest rates this year, given the Greece and Puerto Rico crises and commodity selling fueled by China's market slump.
Gundlach, reiterating his Federal Reserve call first made in early May, said on a client webcast on Tuesday that odds of a Fed rate increase in September are now less than 25 percent.
"I don't think the Fed is going to raise rates in September," said Gundlach, who oversees $73 billion in assets at the Los Angeles-based investment firm.
Gundlach told Reuters in a separate interview earlier Tuesday: "China tanking off of its NASDAQ 1999-like frenzy is reverberating. Also, Greece leaving the euro is a much bigger deal than the cover-their-ears-and-hum perma-bull crowd wanted to perceive it to be.