Gundlach thinks the banking stress won’t be over until the Fed starts cutting interest rates

MarketWatch/Joy Wiltermuth/5-3-2023

graphic image of an underwater piggy bank“It just seems to me that deposits are going to keep drifting out.…I don’t really see what’s going to make it stop, unless the Fed is going to cut interest rates, which there’s no inclination of cutting interest rates at the next meeting.” – Jeff Gundlach, DoubleLine Capital

USAGOLD note: Much wisdom in Gundllach’s view……It is difficult to see how the stresses at the banks can be relieved without a drop in interest rates that would in turn raise the par value of their Treasury holdings.

This entry was posted in Today's top gold news and opinion. Bookmark the permalink.