NEW YORK, Sept 8 Jeffrey Gundlach, chief
executive officer at DoubleLine Capital, said on an investor
webcast Thursday that Federal Reserve officials are in dire need
of taking control of markets and may hike rates even as
investors bet they will not.
"I think the Fed is irritated about this WIRP (World
Interest Rate Probability) thing," said Gundlach, who oversees
more than $100 billion at Los Angeles-based DoubleLine. "The Fed
is going to say 'we are not controlled by the WIRP, we are not
controlled by the market. We are going to tighten even if the
WIRP is below 50,'" Gundlach said.
Gundlach said he expected the Fed to tighten when investors
place odds around 40-45 percent. Currently, WIRP is at 28
percent for the Fed's next meeting on Sept. 21.
(Reporting By Jennifer Ablan; Editing by David Gregorio)