Hedge fund Doubleline’s Gundlach says Federal Reserve may not cut at all this year

Jeffrey Gundlach is a founder of DoubleLine Capital, he spoke after the US CPI data sent shudders through financial markets.

  • Doesn’t look like Fed will start cuts in May, likely June if at all.
  • Rising interest rate environment could spur company defaults.
  • When the economy weakens enough for the Fed to cut in earnest, could see debt expense problems.
  • Personal consumption expenditures are more important than CPI at this juncture.
  • Inflation on the CPI will relax.
  • CPI won’t make that big of a difference for the Fed, but PCE will be important.
  • Commodity prices are a leading indicator for the economy.
  • More bullish than ever on India.

This article was written by Eamonn Sheridan at www.forexlive.com. Source