The Blubber

Per Jeffrey Gundlach on Twitter

Founder of DoubleLine, Jeffrey Gundlach, believes that the Feds would soon cut its rates. He specified on Twitter that they would do so "substantially."

Gundlach also mentioned that he was wrong 30% of the time, and because of this, people should factor in his prediction success rate when considering his statement. Per Market Watch, should rates have to drop, this could happen during summer.

The Federal Reserve has increased interest rates for the ninth time since March 2022. He then gave a statement regarding the yield-curve inversions, with the Fed standing at a near 16-year high of 4.75 to 5% compared to almost zero in 2022.

Gundlach: “Seems obvious the US Treasury Yield Curve will not stay how it is now for long. Curve was deeply inverted, curve is rapidly de -inverting. Saw a financial media TV crawler today that called the Fed ‘defiant,'”

Gundlach joins other investors that have noticed a peak inversion between the 10- and 2-year yields. William O'Donnell, Citigroup Global Markets US rates strategist, gave a statement regarding the performance of investors during the situation, per Bloomberg.

O'Donnell: “Investors are seeking safe-haven yields over fears of banking stresses and tighter financial conditions, worries about the commercial real estate industry and a general view that the Fed — and BOE today — have taken policy rates too deep into restrictive territory, for now,”

Former Richard Fisher, the former President of the Dallas Fed, said he doesn't think the "Fed should pause the 25 basis point hike." Fisher also said that the Feds were responsible for raising rates while banks were responsible for managing risks and that the banks failed.

JPMorgan has said that the Feds are now "past the point of no return" and that it would be unlikely for them to achieve a soft landing.

See flow at unusualwhales.com/flow.

Other News:

• Former Dallas Fed President Richard Fisher: 'I don't think the Fed should pause the 25 basis point hike'
• JPMorgan says Feds are past the point of no return: 'a soft landing now looks unlikely'

Resources:

Jeffrey Gundlach on Twitter

Market Watch

Bloomberg