{"id":18724,"date":"2023-03-15T00:14:55","date_gmt":"2023-03-15T00:14:55","guid":{"rendered":"https:\/\/crowdfundjunction.com\/blog\/billionaire-bond-king-jeffrey-gundlach-expects-fed-to-raise-rates-next-week-that-would-be-the-last-increase-economics-bitcoin-news\/"},"modified":"2023-03-15T00:14:55","modified_gmt":"2023-03-15T00:14:55","slug":"billionaire-bond-king-jeffrey-gundlach-expects-fed-to-raise-rates-next-week-that-would-be-the-last-increase-economics-bitcoin-news","status":"publish","type":"post","link":"https:\/\/crowdfundjunction.com\/blog\/billionaire-bond-king-jeffrey-gundlach-expects-fed-to-raise-rates-next-week-that-would-be-the-last-increase-economics-bitcoin-news\/","title":{"rendered":"Billionaire ‘Bond King’ Jeffrey Gundlach Expects Fed to Raise Rates Next Week \u2014 ‘That Would Be the Last Increase’ \u2013 Economics Bitcoin News"},"content":{"rendered":"

(Originally posted on : Bitcoin News )<\/b>
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Billionaire Jeffrey Gundlach, aka the \u201cBond King,\u201d expects the Federal Reserve to raise interest rates at its March meeting next week, which \u201cwould be the last increase,\u201d he said. In addition, Gundlach cautioned: \u201cThe inflationary policy is back in play with the Federal Reserve.\u201d<\/strong><\/p>\n

Doubleline CEO Jeffrey Gundlach on Fed Rate Hikes<\/h2>\n

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 \u201cthe Bond King\u201d after he appeared on the cover of Barron\u2019s as \u201cThe New Bond King\u201d in 2011. According to Forbes, his net worth is currently $2.2 billion.<\/p>\n

Following the collapses of Silicon Valley Bank<\/a> and Signature Bank<\/a>, many economists have revised their rate hike predictions. Global investment bank Goldman Sachs, for example, no longer expects<\/a> the Fed to raise interest rates in March.<\/p>\n

Regarding whether the Federal Reserve will raise interest rates at its next Federal Open Market Committee (FOMC) meeting next week, Gundlach said: \u201cI just think that, at this point, the Fed is not going to go 50 [basis points]. I would say 25.\u201d He elaborated:<\/p>\n

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To save, kind of, the program and their credibility, they\u2019ll probably raise rates 25 basis points. I would think that that would be the last increase.<\/p>\n<\/blockquote>\n

Noting that the Silicon Valley Bank fallout is \u201creally throwing a wrench in [Fed Chair] Jay Powell\u2019s game plan,\u201d the executive emphasized: \u201cI wouldn\u2019t 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\u2019ve solved.\u201d<\/p>\n

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.<\/p>\n

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 \u201ckind of a coin flip.\u201d<\/p>\n

Gundlach also reiterated his warning about an upcoming recession<\/a>, citing the dramatic steepening of the Treasury yield curve that generally precedes an economic downturn. Noting that \u201cIn all the past recessions going back for decades, the yield curve starts de-inverting a few months before the recession comes in,\u201d the billionaire opined:<\/p>\n

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I think that the inflationary policy is back in play with the Federal Reserve \u2026 putting money into the system through this lending program.<\/p>\n<\/blockquote>\n

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Fed hikes in March<\/a>, fed rate hikes<\/a>, Jeffrey Gundlach<\/a>, Jeffrey Gundlach bond king<\/a>, Jeffrey Gundlach Fed rate hikes<\/a>, Jeffrey Gundlach Fed rate prediction<\/a>, Jeffrey Gundlach FOMC<\/a>, Jeffrey Gundlach Jerome Powell<\/a>, Jeffrey Gundlach Signature Bank<\/a>, Jeffrey Gundlach Silicon Valley Bank<\/a>, March rate hike<\/a><\/div>\n<\/div>\n

Do you agree with Jeffrey Gundlach? Let us know in the comments section below.<\/strong><\/em><\/p>\n

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\nKevin Helms <\/h6>\n

\nA 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.

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Image Credits<\/b>: Shutterstock, Pixabay, Wiki Commons<\/em><\/p>\n

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Disclaimer<\/strong>: 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<\/a> 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.<\/p>\n<\/div>\n

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