15 December 2023
DoubleLine’s founder warned in a CNBC interview that a drop below 4% in the 10-year rate could signal major economic troubles. Since then, the rate has decreased to 3.9%. He anticipates a further decline into the “low threes” in 2024, coinciding with a likely recession. Gundlach predicts the Federal Reserve will cut the fed funds rate by 200 basis points, significantly more than the 75 basis points projected by Fed officials for 2024, reflecting a severe economic slowdown.