Gonlack: The Federal Reserve simply cannot cut interest rates; inflation and the market are not cooperating.

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ME News report, May 18 (UTC+8). DoubleLine Capital CEO Gundlach said investors will not see a rate cut at the next Federal Reserve policy meeting. He pointed out that although the market had expected two rate cuts this year, the inflation market just isn’t cooperating. Gundlach mentioned that when the two-year Treasury yield is nearly 50 basis points higher than the federal funds rate, a rate cut is simply impossible. He also said that Kevin Warsh, newly confirmed as the Federal Reserve Chair, took office during a “difficult period,” and predicted that the first digit of the next CPI index will be “4.” (Source: ChainCatcher)
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