U.S. Markets closed

Why Gundlach Thinks Rate Cut Would Increase Chance of Recession

Anuradha Garg
Why Gundlach Thinks Rate Cut Would Increase Chance of Recession

The Fed’s dovish stance is in response to the increased economic uncertainty and rising geopolitical risks. Gundlach told Reuters that for the Fed to cut interest rates in July, the economic data has to be weak. Currently, the fed fund futures imply that traders are pricing in a 100% chance of a Fed rate cut in July.