Fed Chairman Jerome Powell faces the tough challenge of presenting a unified voice on Fed policy from the most divided Fed in years.Market Insiderread more
Beijing is still short on details on how it will respond to new U.S. tariffs on Chinese goods.World Economyread more
Falling air cargo demand could be flashing warning signs about the broader economy.Transportationread more
U.S. Secretary of State Mike Pompeo says Huawei CFO Meng Wanzhou, who is under house arrest in Canada and facing extradition to America, is not a bargaining chip in the trade...Technologyread more
Target's latest earning report shows how these investments are driving traffic and sales at a time when other retailers are struggling.Retailread more
The chip, called the Ascend 910, was first unveiled in October last year and is aimed at data centers.Technologyread more
Brazilian President Jair Bolsonaro hit back at French leader Emmanuel Macron, after he urged dialogue among G-7 leaders on the rising number of fires in the Amazon rainforest.World Politicsread more
Investors are rushing to get a piece of its privately held rival Impossible Foods before it goes public, according to the Wall Street Journal.Food & Beverageread more
"The economy may be in good shape now, but if we keep getting more and more tariffs it could deteriorate," Jim Cramer says.Mad Money with Jim Cramerread more
Local governments commonly share single service providers, making many vulnerable at once. On top of this, ransomware has often been used to mask more targeted, malicious...Technologyread more
Google says it shut down hundreds of YouTube channels tied to misinformation around the Hong Kong protests.Technologyread more
'stunning'@ (Adds quotes, byline)
March 21 (Reuters) - The Federal Reserve's cautious stance on raising interest rates could backfire by creating uncertainty in the economy and hurt the U.S. central bank's credibility, Jeffrey Gundlach, chief executive of DoubleLine Capital, said on Thursday.
"This U-Turn - on nothing fundamentally changing - is unprecedented," Gundlach said in a telephone interview. "Three months ago, we were on 'autopilot' with the balance sheet - and now the bond market is priced for a rate cut this year. The reversal in their stance is stunning."
The Fed on Wednesday scaled back its projected interest-rate increases this year to zero from two in its December forecasts, and said it would end the drawdown of its bond holdings in September after holding rates steady.
Gundlach, who oversees more than $123 billion in assets and is known on Wall Street as the "Bond King," said he feels the Fed's massive shift in such a short period on quantitative tightening could hurt the U.S. central bank's credibility.
"They aren't telling you what they are targeting. It's like they aren't really telling you what their motivation is," Gundlach said. "Just because things seem invincible doesn't mean they are invincible. There is kryptonite everywhere. Yesterday's move created more uncertainty."
Gundlach, who correctly predicted the S&P 500 would post negative returns in 2018, said the benchmark index is set for another negative year. He said the stock market, for now, "likes the fact that they (the Fed) aren't going to give them any problems."
But things could change quickly and dramatically, he said. "It feels eerily like '07," he said. "The stock market is near its high and the economy is noticeably weaker - and yet everyone is saying 'Everything is Great!"'
Against this backdrop, Gundlach said he favors a plain-vanilla Treasury fund investing in maturities of one to five years. (Reporting by Jennifer Ablan; Editing by Richard Chang)