Gundlach: The Fed’s “Recalibration,” 75 bps of More Rate Cuts in ’24 and Portfolio Positioning Post-Cut

DoubleLine CEO and Founder Jeffrey Gundlach joins CNBC’s Scott Wapner on Fed Day, Sept. 18, 2024, at DoubleLine’s downtown L.A. office to discuss the Federal Reserve’s half-point rate cut, which Mr. Gundlach forecast and supports. Other topics include:

– Why Mr. Gundlach thought the Fed should have cut in July.

– Mr. Gundlach: “I think the word of the day was ‘recalibration.’ (Fed Chair Jerome H. Powell) said it a lot of times that they’re recalibrating the rates. I think he seemed relaxed to me and cracked a couple of jokes, which you don’t see much from Mr. Powell.”

– Is the Fed concerned about cutting again in November right before the elections?

– Mr. Gundlach on recession prospects: “I still think there’s a good shot that the history books will say September of ’24 was the start of a recession.”

– Why Mr. Gundlach expects 75 bps of more cuts in 2024.

– How credit investors should react to today’s investment environment.

– Mr. Gundlach’s concern for future economic policy: “The problem that I worry about is that our responses to recessions have been incrementally more money printing.”

– Mr. Gundlach on the prospects for a golden age for fixed income: “The golden age for fixed income was a year ago, when spreads on high yield bonds were 500 over, and the base rate was at 5%.”

– Why Mr. Gundlach thinks private credit is in a bubble.

– Mr. Gundlach on the outlook for gold: “I think that the path of least resistance for gold continues to be up.”