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Updated · Bloomberg · May 17Gundlach Rules Out Next Fed Rate Cut as 2-Year Yield Tops Funds Rate by 50 Basis Points
1 articles · Updated · Bloomberg · May 17
- Jeffrey Gundlach said investors should not expect a Federal Reserve rate cut at the next policy meeting.
- On Fox News' Sunday Morning Futures, the DoubleLine Capital CEO said inflation has not eased enough and market risks still argue against lower rates.
- His key market signal was the 2-year Treasury yield running nearly 50 basis points above the federal funds rate, which he said makes a cut untenable.
- Gundlach added that hopes for two Fed cuts in 2026 have faded as inflation data have failed to cooperate.
With a new Fed chair appointed, is a surprise rate hike, not a cut, now the real risk for 2026? The 'Bond King' predicts no rate cuts. Will soaring oil prices force the Fed to choose fighting inflation over preventing a recession?