Fun

Billionaire ‘Bond King’ Jeffrey Gundlach Expects Fed to Raise Rates Next Week — ‘That Would Be the Last Increase’

News Feed - 2023-03-15 08:03:42

Billionaire "Bond King" Jeffrey Gundlach Expects Fed to Raise Rates Next Week — "That Would Be the Last Increase"


Billionaire Jeffrey Gundlach, aka the “Bond King,” expects the Federal Reserve to raise interest rates at its March meeting next week, which “would be the last increase,” he said. In addition, Gundlach cautioned: “The inflationary policy is back in play with the Federal Reserve.” Doubleline CEO Jeffrey Gundlach on Fed Rate Hikes


Jeffrey Gundlach, chief executive and chief investment officer of investment management firm Doubleline, shared his Fed rate hike expectations in an interview with CNBC Monday. Gundlach is nicknamed “the Bond King” after he appeared on the cover of Barron’s as “The New Bond King” in 2011. According to Forbes, his net worth is currently $2.2 billion.


Following the collapses of Silicon Valley Bank and Signature Bank, many economists have revised their rate hike predictions. Global investment bank Goldman Sachs, for example, no longer expects the Fed to raise interest rates in March.


Regarding whether the Federal Reserve will raise interest rates at its next Federal Open Market Committee (FOMC) meeting next week, Gundlach said: “I just think that, at this point, the Fed is not going to go 50 [basis points]. I would say 25.” He elaborated: To save, kind of, the program and their credibility, they’ll probably raise rates 25 basis points. I would think that that would be the last increase.


Noting that the Silicon Valley Bank fallout is “really throwing a wrench in [Fed Chair] Jay Powell’s game plan,” the executive emphasized: “I wouldn’t do it myself. But what do you do in the context of all this messaging that has happened over the past six months, and then something happens that you think you’ve solved.”


On Sunday, the Treasury Department, the Federal Reserve Board, and the Federal Deposit Insurance Corporation (FDIC) disclosed a plan to support depositors at failed Silicon Valley Bank and Signature Bank. The Treasury Department will furnish up to $25 billion from its Exchange Stabilization Fund to cover any prospective losses from the funding program. The Federal Reserve also announced that it will grant loans for up to one year to entities impacted by the bank failures.


While anticipating a rate hike in March, Gundlach acknowledged the possibility that the Fed may not raise rates, noting that the market is currently pricing in this possibility as a “kind of a coin flip.”


Gundlach also reiterated his warning about an upcoming recession, citing the dramatic steepening of the Treasury yield curve that generally precedes an economic downturn. Noting that “In all the past recessions going back for decades, the yield curve starts de-inverting a few months before the recession comes in,” the billionaire opined: I think that the inflationary policy is back in play with the Federal Reserve … putting money into the system through this lending program. Tags in this story Fed hikes in March, fed rate hikes, Jeffrey Gundlach, Jeffrey Gundlach bond king, Jeffrey Gundlach Fed rate hikes, Jeffrey Gundlach Fed rate prediction, Jeffrey Gundlach FOMC, Jeffrey Gundlach Jerome Powell, Jeffrey Gundlach Signature Bank, Jeffrey Gundlach Silicon Valley Bank, March rate hike


Do you agree with Jeffrey Gundlach? Let us know in the comments section below. Kevin Helms


A student of Austrian Economics, Kevin found Bitcoin in 2011 and has been an evangelist ever since. His interests lie in Bitcoin security, open-source systems, network effects and the intersection between economics and cryptography. Goldman Sachs Now Expects No Rate Hike in March Due to Stress in US Banking System ECONOMICS | 22 hours ago Robert Kiyosaki Warns of "Crash Landing Ahead" as Bailouts Begin — Advises Buying More Bitcoin ECONOMICS | 24 hours ago


Image Credits: Shutterstock, Pixabay, Wiki Commons Previous articleMoody’s Downgrades US Banking Sector to Negative After Collapse of Three Major Banks Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article. Read disclaimerShow comments More Popular NewsIn Case You Missed ItDraft Law Regulating Aspects of Crypto Taxation Submitted to Russian Parliament


A bill updating Russia’s tax law to incorporate provisions pertaining to cryptocurrencies has been filed with the State Duma, the lower house of parliament. The legislation is tailored to regulate the taxation of sales and profits in the country’s market ... read more.NFT Sales Volume Saw a Small Uptick This Week — Moonbirds, Mutant Apes Take Top Sales Fed"s Bullard Wants to Raise Bank Rate to 3.5% by Year"s End, Hints at 75 Basis Point Rate Hike FBI Issues Alert Concerning Malicious State-Sponsored North Korean Hackers Targeting Crypto Firms Interest in Real Estate Investments in Spain Grew 400%, With Some Using Crypto and Stocks as Payment Method

News Feed

6 AI applications already changing the healthcare industry
Shiraz Jagati13 hours ago6 AI applications already changing the healthcare industryAI is accelerating scientific breakthroughs and improving research outcomes. Here are eight projects harnessing its power to improve huma
Stand With Crypto PAC has received $14K since launch, not $179M
Turner Wright3 hours agoStand With Crypto PAC has received $14K since launch, not $179MMoney from cryptocurrency advocates could play a role in the 2024 election cycle, so why does the Stand With Crypto PAC seem to be ob
Crypto.com Signs Multi-Year Deal With LA’s Angel City Football Club
Crypto.com Signs Multi-Year Deal With LA"s Angel City Football Club The cryptocurrency exchange Crypto.com has announced the company has partnered with the Angel City Football Club
Crypto.com Accidentally Sent $7 Million to Customer — Sues 7 Months Later to Get It Back
Crypto.com Accidentally Sent $7 Million to Customer — Sues 7 Months Later to Get It Back Cryptocurrency exchange Crypto.com accidentally transferred about $7.26 million to a cust
David Attlee13 hours agoEuropean regulator: DeFi comes with significant risks as well as benefitsThe European Securities and Markets Authority released an article on decentralized finance and its risks for the EU market.
Mt. Gox creditors report multiple ‘brute-force’ attempts on their accounts
Brayden Lindrea5 hours agoMt. Gox creditors report multiple ‘brute-force’ attempts on their accountsMt. Gox’s claims website is currently down for maintenance, while Mt. Gox creditors are still looking for an expla
Bitcoin Data Reveals Bulls Are Growing But Still Behind March 2024 Peak – Details
Este artículo también está disponible en español. Bitcoin has proven unstoppable, breaking all-time highs five times in six days and surging past the $82,000 mark. This l
Court allows most SEC claims to proceed in Binance suit
Brayden Lindrea5 hours agoCourt allows most SEC claims to proceed in Binance suitJudge Amy Berman Jackson however dismissed the SEC’s claim that BNB is traded illegally on secondary markets, citing the Ripple decision.
Arijit Sarkar13 hours agoJPMorgan, Apollo plan for enterprise mainnet, execs revealThe enterprise mainnet provides the scalability to add applications to a network with a KYC-compliant set of institutional banks, broker-
Ezra Reguerra11 hours agoIndia proposes AI-powered conversational payments system — RBIIndia’s central bank said that there’s a potential for an AI system that would initiate transactions through a conversation.108
Can blockchain revolutionize digital securities management for stock exchanges?
Savannah Fortis11 hours agoCan blockchain revolutionize digital securities management for stock exchanges?Cointelegraph spoke with the Sui network to better understand how blockchain is playing a part in enhancing securi
Bitcoin open interest jumps $1.3B following Fed's 'dovish' minutes
Ciaran Lyons2 hours agoBitcoin open interest jumps $1.3B following Fed"s "dovish" minutesBitcoin Open Interest has jumped by over a billion following the United States Federal Reserve ‘dovish’ minutes on Aug. 21.1467