DoubleLine’s Gundlach says his base case is one rate cut this year, two reductions maximum
Published On Jan 29, 2025, 4:54 PM
Jeffrey Gundlach, CEO of DoubleLine Capital, has predicted that the Federal Reserve will only implement one rate cut in 2025, and a maximum of two. He emphasizes that the Fed is patient as it assesses economic data related to inflation and the labor market. Currently, the Fed is not in a rush to adjust interest rates, especially since the economy remains robust. Gundlach also expects long-duration Treasury yields to rise further and warns investors against owning high-risk assets due to elevated valuations.
Stock Forecasts
TLT
Negative
Gundlach's cautious outlook suggests a potentially bearish trend for high-risk assets while predicting higher yields for Treasuries. The anticipated rate cut may provide some support to certain sectors, particularly those sensitive to interest rates.
Related News
Higher Interest Rates Make Federal Debt More Expensive
Jan 29, 2025, 1:00 PM
The Fed’s key rate has a bearing on the sustainability of public borrowing, which is heading to striking levels.
Yahoo Finance Chartbook: 44 charts that tell the story of markets and the economy to start 2025
Jan 28, 2025, 5:58 AM
Across more than three dozen charts, top Wall Street experts explain how the stock market's outstanding two-year run is reaching a turning point as a new president enters the Oval Office and interest rates are expected to remain higher than the pre-pandemic normal.
BlackRock's Fink sees potential risks and says the bond market will tell us where we are going
Jan 23, 2025, 9:07 AM
BlackRock CEO Larry Fink said Trump's efforts to unleash capital in the private sector could reaccelerate inflation and hurt the stock market.