The Federal Reserve may have just had a "mission accomplished" mistake, according to one market expert.
DoubleLine Capital's Jeffrey Gundlach said the Fed's Wednesday announcement of the first rate hike since 2006 has been "a long time in the making," but it could come back to haunt Chair Janet Yellen.
Reiterating his earlier comments that the central bank's hike was more about credibility than economics, Gundlach pointed to Yellen's afternoon news conference comments.
"She says 'the era of extraordinary accommodation has ended,' which of course is not true at all," he said, adding that a target funds rate between 0.25 percent and 0.5 percent is still extremely accommodative. "I'm reminded of George W. Bush on the aircraft carrier with 'mission accomplished.' I think Janet may have jumped the gun on mission accomplished."
In fact, Gundlach predicted that market watchers will be talking about the Fed more than ever — "this is not the endpoint in the journey," he added.
As for market reactions, the bond expert predicted that the dollar would not see a significant rally. He said he was watching to see if the dollar index could mark two closes above its 100.33 March high.