Jeffrey Gundlach, Wall Street's bond king and Founder and Chief Executive Officer of DoubleLine Capital, believes that a US economic recession is likely in 2023, as the US Federal Reserve (Fed) may fail to provide a soft landing.
Key quotes
“The Fed’s Wednesday announcement of an interest rate hike is merely them “following” the two-year Treasury, adding that they were “way behind.”
“We have an incredibly flat yield curve given where we are in terms of the absolute rate level and the inflation level.”
“Stocks are oversold and will go higher in the immediate term but will roll over once a couple more rate hikes are in place.”
“See 2022 inflation coming in lower from a year ago in the “high 5%” but not at the level the Fed is forecasting.“
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