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Gundlach's forecast: the Fed will cut rates by the end of the year


According to Bloomberg, a growing number of experts believe that the US Federal Reserve is wrong about a possible increase in interest rates in the future. Bond investor Jeffrey Gundlach predicts that the rate will be cut as the risk of a recession increases. Over the past two weeks, short-term bond yields have fallen significantly as bearish investors are convinced that the Fed should cut interest rates before the end of the year. This sentiment is spreading not only in the US, but around the world, and traders are preparing for the end of the tightening cycles of monetary policy. Swap markets believe that the Fed will likely end the current rate hike cycle, with the odds of a quarter-point rate hike in May dropping to 1 to 3. At the same time, the market expects the rate to be cut by at least three-quarters of a point by the end of the year, despite the statement by Fed Chairman Jerome Powell on Wednesday that no rate cut is expected yet. Jeffrey Gundlach believes the Fed will cut rates soon, as the recession signal from the US Treasury yield curve is worrisome. The 2-year Treasury yield fell 18 basis points on Thursday to 3.75% from close to 7 basis points earlier.

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Forex Award | World Forex Award | Forex
Forex Award | World Forex Award | Forex
Forex Award | World Forex Award | Forex
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