doubleline capital ceo jeffrey gundlach said its very likely that the federal reserve will raise interest rates by half a percentage point at its next policy meeting after powells testimony today the chances of a 50basis point increase have gone up a lot in the betting markets gundlach said tuesday during a doubleline investor webcast weve had a very large increase in shortterm interest rates and a further inversion of the yield curve  we dont need the fed all we need is the 2year treasury the yield on the 2year us treasury note jumped over 12 basis points to top 5 on tuesday reaching its highest level since 2007 the sharp move higher followed fed chairman jerome powell  who said interest rates are likely to be higher than previously anticipated the socalled bond king said the fed funds rate has almost perfectly mirrored the 2year treasury yield over the years its now corroborating the idea that the fed will probably take the fed funds rate up to 5 at the upcoming meeting gundlach said the probability of a halfpoint increase rose to 705 tuesday evening according to cme group data thats up sharply from 314 just a day ago the federal open market committees twoday meeting begins on march 21 the only way that wont happen is if the employment data and the unemployment rate  surprises to the downside that has not been the pattern recently gundlach said if it comes in at or above expectations i think its a lock that the feds going to go with 50 basis points at a minimum in senate testimony powell noted that the labor market remains extremely tight despite the feds rate hikes and attempts to cool economic growth were very far from our price stability mandate and in effect the economy is past most estimates of maximum employment powell said the fed has boosted the federal funds rate eight times to a target range of 45475 the highest since october 2007