DoubleLines Gundlach: Rates a big part of sell-off

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"We are getting into that zone where the typical mortgage payment is increasing much faster than incomes, and that's going to put a brake on some markets", said Aaron Terrazas, a senior economist at the real estate site Zillow. "These are all valid concerns that have shown up in world markets", he wrote in a note to clients on Thursday.

Global stock markets fell again on Thursday as investors anxious about signs of slowing growth, rising trade tensions and higher interest rates. His criticism breaks a longtime political tradition. I wandered through the neighborhood in which I live, enjoying the weather and treating myself to an iced coffee rather than staying home to watch CNBC, be enslaved by my computer and twitch.

"You don't see that inflation coming back". As opposed to reacting.

Buying all those securities drove up their prices, which means that it drove down their interest yields.

They include the United States trade war with China and its potential impact on global growth, while rising bond yields have diverted attention from equities - stocks - which have been offering the most attractive returns for years because central bank stimulus had flooded markets with cheap money.

Forecasters with Macroeconomic Advisers left their outlook for annualized gross domestic product growth unchanged at 3.7 percent for the third quarter and 2.6 percent for the fourth quarter.

"The curve should probably steepen so maybe the 10-year Treasury makes it to 3.5 percent or 3.6 percent during that move", he added.

Increased the deficit by 1 1/2% of GDP.

Interest rates are rising.

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"The market seems to have accepted the Fed's rate path", said Megan Greene, chief economist at Manulife Asset Management. But that's not right. The Federal Reserve is determined to continue until at least the end of next year. It doesn't control long-term rates without doing the kind of extraordinary things that it started doing a decade ago.

The benchmark Nikkei 225, the Hang Seng in Hong Kong and the Shanghai Composite all plummeted more than 3% in early morning trade, as investors fretted about surging interest rates and an ongoing trade war.

"I'm paying interest at a high rate because of our Fed", he added, referring to the cost of servicing the U.S. deficit. Now, in traditional economic thinking, low unemployment leads to rising wages, which leads to inflation, which leads to higher policy rates. Investors would withdraw money from the Indian markets as the USA ones would offer better rate of return.

Trump's statement comes after stocks plunged on Wednesday.

The Fed traditionally remains outside the purview of the President, though Trump has at moments blurred the lines by commenting on Fed policy.

That hasn't prevented presidents from being evaluated according to how the stock market fared during their terms in office.

Trump said Tuesday that the economy is enjoying "record-setting" numbers and "I don't want to slow it down even a little bit, especially when we don't have the problem of inflation".

The Fed's record isn't ideal - whose is? - but it's out there doing the best it can.

"I think they're making a big mistake", Trump said on Fox & Friends. And our country and our economy will be better off than they would otherwise be.

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