Gundlach: Fed will hike in 2015 but not for fundamental reasons

Doubleline founder Jeffrey Gundlach, on CNBC, says the Fed will hike rates in 2015 but not because of inflation. He said year-over-year inflation could be zero next year but that the Fed could hike to “see what happens” because they don’t want to be at zero.

On the bond market, he said he can’t see a meaningful rise in Treasury yields with European sovereign yields so low. He cited Spanish 10-year yields falling below 2% and French 10s nearing 1%.

On FX, he says trends can extend for a very long time and he continues to see USD/JPY rising. He’s talked about 200 in USD/JPY in the past and that remains his long-term view.