"New Bond King" Gundlach: The Federal Reserve is expected to cut interest rates by 50 basis points on Wednesday

The camp betting on the Federal Reserve to start a rate cut cycle with a 50 basis point cut on Wednesday is growing, with DoubleLine Capital CEO Jeffrey Gundlach also joining in. Speculation that the Fed will quickly cut rates to prevent the economy from stagnating has driven the bond market. The yield on 2-year US Treasury bonds is below 3.6%. This is about 1.75 percentage points lower than the Fed's target rate. Gundlach, who has long served as a bond fund manager, believes that the Fed should narrow this gap