Crypto 24X7 News Hubb
Advertisement
  • Home
  • Crypto Currency
  • Bitcoin
  • Ethereum
  • Crypto Mining
  • Contact us
No Result
View All Result
  • Home
  • Crypto Currency
  • Bitcoin
  • Ethereum
  • Crypto Mining
  • Contact us
No Result
View All Result
Crypto 24X7 News Hubb
No Result
View All Result
Home Bitcoin

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

admin by admin
March 15, 2023
in Bitcoin


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.




Image Credits: Shutterstock, Pixabay, Wiki Commons

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.

More Popular News

In Case You Missed It





Source link

Previous Post

Halborn Detect Vulnerability Affecting over 280 Blockchains

Next Post

Signature Bank investigated for money laundering prior to demise: Report

Next Post

Signature Bank investigated for money laundering prior to demise: Report

Recommended

Bitcoin Price Hits $21,000, Huge Short Squeeze – Bitcoin Magazine

January 18, 2023

California DMV to digitize car title management system via Tezos

January 28, 2023

Don't miss it

Ethereum

SEC targets Coinbase, Do Kwon arrested, FTX’s $95M in Mysten…

March 26, 2023
Crypto Currency

India to Have Over 150 Million Crypto Users by the End of 2023? (Study)

March 26, 2023
Crypto Currency

US explores additional bank support favoring First Republic’s benefit: Report

March 26, 2023
Bitcoin

Robert Kiyosaki Says Fed Rate Hikes Will Crash Stocks, Bonds, Real Estate, and US Dollar – Economics Bitcoin News

March 26, 2023
Crypto Mining

Coinbase CEO Calls to Support Pro-Crypto Politicians

March 25, 2023
Crypto Currency

Nasdaq Eyeing Q2 2023 Release For Bitcoin And Crypto Custody Platform

March 25, 2023

© 2022 Crypto 24X7 News Hubb All rights reserved.

Use of these names, logos, and brands does not imply endorsement unless specified. By using this site, you agree to the Privacy Policy and Terms & Conditions.

Navigate Site

  • Home
  • Crypto Currency
  • Bitcoin
  • Ethereum
  • Crypto Mining
  • Contact us

Newsletter Sign Up

No Result
View All Result
  • Home
  • Crypto Currency
  • Bitcoin
  • Ethereum
  • Crypto Mining
  • Contact us

© 2022 Crypto 24X7 News Hubb All rights reserved.