Broadcasting from Chicago on July 15, DoubleLine Deputy CIO Jeffrey Sherman explores the current state of the U.S. economy, highlighting the surprising underperformance of GDP relative to expectations and the growing impact of tariff policy on inflation and trade. Mr. Sherman discusses the implications of the recently passed “One Big Beautiful Bill,” which authorizes $5 trillion in additional government spending, and how this could contribute to persistent federal deficits and rising debt levels.
He also dives into key economic indicators, including PMI surveys; employment trends; and inflation data, emphasizing the nuanced effects of tariffs on core goods and services. In addition, Mr. Sherman examines the labor market’s resilience, wage growth and the role of immigration in filling workforce gaps. With inflation still above the Federal Reserve’s target and interest rate cuts potentially on the horizon, he outlines the complex dynamics influencing monetary policy and market sentiment heading into the second half of 2025.
Mr. Sherman concludes with insights into fixed income markets, where volatility has eased and returns have been strong across credit sectors. He discusses the relative value in high-quality assets, the potential for U.S. dollar devaluation and the importance of security selection in a tightening credit environment.
Jeffrey Sherman, DoubleLine’s Deputy Chief Investment Officer, is a thought leader, portfolio manager and public speaker in the industry. Mr. Sherman is a member of DoubleLine’s Fixed Income and Global Asset Allocation committees, and he serves as lead portfolio manager for the firm’s multi-sector and derivative-based strategies. In his role, Mr. Sherman guides the investment teams in developing top-down macro views and collaborative asset allocation processes throughout a market cycle. Additionally, he is a member of DoubleLine’s Executive Management Committee. In 2018, Money Management Executive named Mr. Sherman as one of “10 Fund Managers to Watch” in its yearly special report. Prior to joining DoubleLine in 2009, Mr. Sherman was a Senior Vice President at TCW, where he worked as a portfolio manager and quantitative analyst focused on fixed income and real-asset portfolios. Prior to that, he was a statistics and mathematics instructor at the University of the Pacific and Florida State University. Mr. Sherman taught Quantitative Methods for Level I candidates in the USC/CFALA CFA® Review Program for many years. He holds a B.S. in Applied Mathematics from the University of the Pacific and an M.S. in Financial Engineering from Claremont Graduate University. Mr. Sherman is a CFA® charterholder.
