DoubleLine Capital CEO Jeffrey Gundlach says the bond market is screaming that a recession is imminent.
DoubleLine Capital CEO Jeffrey Gundlach said the bond market is screaming that a recession is imminent, and he sees the Federal Reserve starting to lower interest rates in the near future. Gundlach points to the Treasury yield curve, which is rapidly becoming less inverted, and indicative of an economic downturn on the horizon. "UST 2 Year versus 10 Year is now inverted 40 basis points. Was 107 basis points just a few weeks ago.
The Fed on Wednesday took the benchmark fed funds rate a quarter percentage point higher to a range between 4.75%-5% , while signaling one more rate hike coming this year. Gundlach believes the central bank will reverse course soon. "I predict the Federal Reserve will be cutting rates substantially soon," he tweeted. But Gundlach's prediction contradicts what Fed Chairman Jerome Powell explicitly said Wednesday. "Participants don't see rate cuts this year.
México Últimas Noticias, México Titulares
Similar News:También puedes leer noticias similares a ésta que hemos recopilado de otras fuentes de noticias.
Fed's median view of fed funds rate at end-2023 unchanged at 5.1% in MarchThe Federal Reserve's revised Summary of Economic Projections (SEP), the so-called dot plot, showed that the median view of the policy rate at end-202
Leer más »
Fed recap: All the market-moving comments from Fed Chair Powell after rate hikeThe Federal Reserve announced a 25 basis point rate hike on Wednesday. The increase was widely anticipated by the market.
Leer más »
Fed emergency lending to banks boosted overall Fed holdings in latest weekFederal Reserve emergency lending to banks, which hit record levels last week, remained high in the latest week, amid continued large scale extensions of credit to the financial system, which now includes official foreign borrowing.
Leer más »
Fed's Bostic: Fed rate rise was not an easy decisionAtlanta Fed President Raphael Bostic told NPR on Friday that it was not an easy decision to raise the policy rate, as reported by Reuters. Additional
Leer más »
'Red alert recession signals.' Gundlach expects the Fed to cut rates substantially 'soon.'Coming soon, a recession and Fed rate cuts, says DoubleLine Capital's chief executive and chief investment officer Jeffrey Gundlach.
Leer más »
Red-lined text shows how Fed's statement changed after banking crisisThe central bank's rate-hike announcement shifted away from words like 'ongoing increases' toward 'some additional firming.'
Leer más »