You're listening to Closing Bell in Progress.

I'm Scott Wopner. We are live today from Double Line Capital in Los Angeles.

And Jeffrey Gunlock joins me now for a C NBC exclusive interview. It's good to be back here in Los Angeles with you.

Indeed, welcome back. It's been a long time. It has. We continue our streak of Fed days

with you. Your reaction to the decision when you were with me in June you said quote I don't

think the Fed is going to raise rates again yet here we are yeah they raised again

and obviously the bond market was way ahead of this. I mean the warp function which gives you a

probability from the shape of the short and the yield curve was over 99%.

And I don't think we've had one meeting really since this all started where there's a unanimity of opinion that A there was going to be a hike but that there wasn't even any debate that was going to be 25 or 50.

So they're obviously slowing down the yield curve remains inverted.

It de-inverted there in the aftermath of the regional banking problem with

S. V. And that was a real recessionary sign. That was a moment where the

markets were getting pretty nervous because the recessionary signals really you get on watch when the yield

curve gets very inverted but as was brought up in some previous guests on your

network today it's when it starts to

de-invert that you really get worried. And that stopped happening

once the bank crisis calmed down. So the de-inversion is what you have to have to look for and hasn't really happened.

I mean, we're back out at about a hundred basis points, two's tens, and we're really inverted from the three-month bill to the 10-year treasure.

We're watching for that.

We're also watching for the gap between consumers' views of the present start to deteriorate and meet up with sort of what they have

of the view of the future which is almost always on the pessimistic side.

It's kind of weird, they always think it's going to be a little worse in 12 months.

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