Mar 20, 2024

Jeffrey Gundlach on X Spaces: FOMC Reaction

DoubleLine CEO-CIO Jeffrey Gundlach, following Fed Chair Jerome H. Powell’s press conference, shared his post-Federal Open Market Committee (FOMC) meeting reaction with P&I Editor-in-Chief Jennifer Ablan. On Wednesday, March 20, the FOMC left interest rates unchanged but suggested the possibility of three rate cuts this year. The market had anticipated more cuts initially but has now aligned around three cuts. The U.S. Treasury yield curve steepened, and stock markets surged following the announcement. Mr. Gundlach noted that since the Fed’s rhetorical pivot in November, credit-focused assets have outperformed Treasuries, with tightening spreads and shifting pricing trends across various credit ratings. This shift signals rising risks in high yield bonds and stock momentum trades.

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  • Jeffrey Gundlach

    Jeffrey Gundlach

    Mr. Gundlach is CEO of DoubleLine.  In 2011, he appeared on the cover of Barron's as "The New Bond King."  In 2013, Institutional Investor named him "Money Manager of the Year."  In 2012, 2015 and 2016, he was named one of "The Fifty Most Influential" in Bloomberg Markets.  In 2017, he was inducted into the FIASI Fixed Income Hall of Fame.  Mr. Gundlach is a summa cum laude graduate of Dartmouth College, with degrees in Mathematics and Philosophy.