US: A recession’s likely in 2023 – DoubleLine's Gundlach
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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Author
Dhwani Mehta
FXStreet
Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.
