Deep recession to force full percentage-point fed cut Double Line warns

Bloomberg/Anchalee Worrachate/7-25-2023

“Markets should brace for a deep US recession that warrants a dramatic one percentage-point interest-rate cut by the Federal Reserve, warned DoubleLine Capital’s Jeffrey Sherman.”

USAGOLD note: Sherman thinks that the Fed will be slow to act in the face of a hard recession and then be forced to “unleash the biggest cut since the pandemic struck.” We should add that Doubletree’s Jeff Gundlach consistently has been among the most bearish Wall Street commentators.