Jeffrey Gundlach, the founder, CEO and chief investment officerof DoubleLine Capital, said the Federal Reserve may raise interestrates in December because of the strength in the latest jobsreport, but he still opposes the move.

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In a presentation at this week's Schwab Impact conference inBoston, Gundlach laid out myriad reasons for the Fed to wait on itsfirst hike in more than nine years, including the fact that workers55 and older accounted for virtually all the 271,000 jobs gained inOctober. Still, he said the 2.5% increase in hourly wages fromOctober 2014 could push the Fed to finally make its move.

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“That is what the Fed is leaning on,” Gundlach said. But he alsonoted that the Fed could delay once again if the dollar continuesto rally; more specifically, if the dollar index (DXY) closes above100 for two consecutive sessions.

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Gundlach iterated the many reasons for the Fed to delay raisingrates:

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1. Inflation remains subdued, well below the Fed's 2% target, asexemplified in the Fed's favorite inflation indicator: Core PCE(personal consumption expenditures), which is up just 1.3% yearover year. In addition, U.S. headline inflation is currently lowerthan inflation in the European Union, which has negative interestrates, and the U.K.

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2. U.S. economic growth, adjusted for inflation, is onlyslightly stronger than European growth: Two percent year over yearversus 1.5% while ECB President Mario Draghi is considering moreeconomic stimulus. “Why is doubling down on stimulus appropriate inEurope while with similar GDP the U.S. is thinking about raisingrates?” Gundlach asked.

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3. Fed governors are split about making the move.

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4. Interest rates are already rising gradually across the yieldcurve. The only rate that hasn't risen is the federal funds rate,Gundlach said.

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5. The junk bond index, a “great leading indicator of financialconditions,” is at a four-year low.

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6. The Goldman Sachs Financial Conditions Index, which rises asconditions worsen, is much higher than it was in 2012. “Why raiseinterest rates now?” asked Gundlach.

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Once the Fed does start raising rates, the world changes, saidGundlach. He pooh-poohed sentiment that a 25 basis point (0.25%)Fed rate hike is no big deal.

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“About two-thirds of today's money managers have neverexperienced a single Fed rate hike,” Gundlach said. “How do theyknow what will happen?”

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Bernice Napach

Bernice Napach is a senior writer at ThinkAdvisor covering financial markets and asset managers, robo-advisors, college planning and retirement issues. She has worked at Yahoo Finance, Bloomberg TV, CNBC, Reuters, Investor's Business Daily and The Bond Buyer and has written articles for The New York Times, TheStreet.com, The Star-Ledger, The Record, Variety and Worth magazine. Bernice has a Bachelor of Science in Social Welfare from SUNY at Stony Brook.