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

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ME News message: On May 18 (UTC+8), DoubleLine Capital CEO Jeffrey Gundlach said that investors will not see a rate cut at the next Federal Reserve policy meeting. He noted that although the market had expected two rate cuts this year, the inflation market simply isn’t cooperating. Gundlach said that when the two-year U.S. Treasury yield is nearly 50 basis points higher than the federal funds rate, a rate cut is simply not possible. He also said that Kevin Wosh, who has just been 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 in the “4” range. (Source: ChainCatcher)
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