Gundlach Says Fed Should Raise Rate to 3% on Wednesday

Reuters

Signs Fed could get aggressive roil investors, send stocks tumbling

SINGAPORE/NEW YORK (Reuters) -Rising expectations that the Federal Reserve will this week raise interest rates by more than previously forecast unsettled investors on Monday, sending the S&P 500 tumbling to confirm a bear market and intensifying fears over the economic outlook. The Fed meets on Wednesday following data last week showing that U.S. consumer prices rose at their fastest pace since 1981. Citing a report on Monday in the Wall Street Journal, Goldman Sachs said it expects 75-basis-point increases in June and July, and then a 50-basis point hike in September.