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NEW YORK, July 7 (Reuters) - Solid payroll figures in June should keep the U.S. Federal Reserve in a “hike-once-a quarter mindset,” said influential bond manager Jeffrey Gundlach, chief executive of DoubleLine Capital on Friday.
Nonfarm payrolls jumped by 222,000 jobs last month, driven by hefty gains in healthcare, government, restaurants and the professional and business services sectors, the Labor Department said on Friday. It was the second biggest payrolls increase this year and beat economists' expectations for a 179,000 rise.
“It’s a good run-of-the-mill jobs report,” Gundlach said in a telephone interview. Gundlach, known on Wall Street as the "Bond King," said the payrolls report will keep the U.S. central bank in a tightening mode.
“It’s not ‘old school’ sequential tightening when the Fed hiked at every meeting until something breaks,” such as a U.S. recession, Gundlach said. “What we have now is the ‘new old school’ sequential tightening.” (Reporting By Jennifer Ablan; Editing by Tom Brown)