Jeffrey Gundlach Expects Only One Rate Cut for 2025, Says Fed in No Hurry to Adjust Policy
Jeffrey Gundlach, CEO of DoubleLine Capital, believes the Federal Reserve will make only one rate cut for 2025 at most, as the central bank patiently awaits data on the labor market and inflation.
Gundlach stated that while he doesn’t expect two cuts, one cut is the “base case” and the maximum could be two. The Fed kept interest rates unchanged on Wednesday, with Federal Reserve Chair Jerome Powell emphasizing the central bank’s slow approach to adjusting its policy stance.
Gundlach also expressed his view that long-duration Treasury yields still have room to rise, noting that the benchmark 10-year rate has increased about 85 basis points since the Fed cut rates for the first time last year. He cautioned that long-term interest rates will have another move up.
The investor also warned against owning high-risk assets, citing high valuations and his outlook on long-term interest rates.