Fed rate cuts

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DoubleLine’s Jeffrey Gundlach sees no more Fed rate cuts under Jerome Powell

Jeffrey Gundlach, CEO of DoubleLine Capital and a prominent bond market strategist, has issued a stark warning that the Federal Reserve's current easing cycle may have already reached its conclusion under Chair Jerome Powell. Gundlach’s thesis centers on the resurgence of inflationary pressures and the persistence of the 'higher-for-longer' yields narrative, which challenges the consensus market expectation of multiple cuts in 2024 and 2025. This perspective follows a period of volatile Treasury yields and a robust labor market that complicates the Fed's 2% target. For investors, this signals a potential valuation ceiling for growth stocks and a continued premium on fixed-income yields. Gundlach's skepticism aligns with recent 'hawkish' shifts in market pricing, where traders have scaled back bets on aggressive easing. If the Fed indeed pauses or halts its cutting cycle early, the primary risk for markets shifts from recessionary fears to valuation compression. Investors should closely monitor upcoming CPI and PCE data releases to see if they validate Gundlach's thesis of 'sticky' inflation or if the Federal Reserve maintains its projected glide path toward lower rates.

CNBC•2 months ago

US Equities 'Robust' Even Without Fed Rate Cuts: SocGen (Video)

Societe Generale strategists believe the US equities market can maintain its strength, describing it as 'robust,' even if the Federal Reserve does not implement the anticipated interest rate cuts. This perspective suggests that underlying economic fundamentals or corporate earnings are strong enough to support the market independent of easier monetary policy.

Bloomberg•3 months ago

Treasury Secretary Bessent says more Fed rate cuts are 'only ingredient missing' for stronger economy

Treasury Secretary Bessent has indicated that further interest rate cuts from the Federal Reserve are the sole remaining catalyst needed to propel the U.S. economy into a period of more robust growth. This statement suggests that the current economic conditions are otherwise favorable, with the Fed's monetary policy being the primary bottleneck to accelerating progress.

CNBC•3 months ago

Treasuries Gain Most Since 2020 Amid Tariff Chaos, Fed Rate Cuts

Treasury bonds experienced their most significant gains since 2020, primarily driven by market uncertainty stemming from escalating tariff disputes. Compounding this bullish sentiment for bonds are expectations of interest rate cuts by the Federal Reserve, which typically increase the attractiveness of fixed-income assets.

Bloomberg•3 months ago

Fed rate cuts should benefit small-caps in 2026: Strategist

A strategist is predicting that small-cap stocks are likely to see significant benefits from anticipated Federal Reserve interest rate cuts in 2026. This outlook stems from the idea that lower borrowing costs could reduce financial burdens and stimulate growth for smaller companies, which are often more sensitive to interest rate fluctuations than their larger counterparts.

Yahoo Finance•4 months ago

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