DoubleLine Capital CEO Jeffrey Gundlach said he believes the Federal Reserve should stop raising rates after the latest hike as the economy is already weakening. “I think they should not do any more hikes after today,” Gundlach said on CNBC’s ” Closing Bell Overtime ” Wednesday, adding that the central bank might do one more 25-basis-point rate increase. The Fed on Wednesday raised its benchmark interest rate to the highest level in 15 years, taking it to a targeted range between 4.25% and 4.5%. The so-called bond king said the central bank will be “highly encouraged” by the inflation data in the next six months. Gundlach predicted that the consumer price index will fall to 4.1% in June from a peak of 9.1%. The index increased 7.1% last month from a year ago, rising less than expected. “I think there has been some progress on inflation,” Gundlach said. “Nobody’s really talking about all of these runaway price increases anymore. With the economy weakening, I think the inflation rate is going to fall faster than most economists do.” Prior to Wednesday’s rate hike, the Fed had executed a string of four straight three-quarter point hikes, the most aggressive policy moves since the early 1980s. The Fed’s median forecast showed that it will hike rates to as high as 5.1% in 2023 before the central bank ends its fight against inflation. Fed Chairman Jerome Powell said during a news conference Wednesday that the central bank will stay the course until the job is done. Powell noted that historical record cautions strongly against prematurely loosening policy. Gundlach called out the inverted yield curve, which has flashed a recession alert. The yield curve inverts when shorter-term Treasury rates rise above longer-term yields. Many economists view the 2-year 10-year part of the yield curve as more predictive of a potential recession. “When the yield curve inverted, it’s a signal every time that the economy is weakening, and the Fed is at the end of the tightening cycle,” Gundlach said.