Finance

DoubleLine’s Gundlach says his base case is one rate cut this year, two max

Published

2 months ago

January 29, 2025

Business Finance News

Jeffrey Gundlach speaking at the 2019 SOHN Conference in New York on May 6, 2019.

Adam Jeffery | CNBC

DoubleLine Capital CEO Jeffrey Gundlach said Wednesday he expects only one rate cut for 2025 — two reductions at most — as the Federal Reserve patiently awaits incoming data to assess the state of the labor market and inflation.

“Maximum two cuts this year. And I mean maximum, I’m not predicting two cuts. I just think that’s the most you can possibly think about,” Gundlach said on CNBC’s “Closing Bell.” “At the present moment, if you had made me pick a number, I would say now one cut would be the base case and maximum two.”

The central bank kept interest rates unchanged Wednesday after three consecutive cuts to end 2024. Fed Chair Jerome Powell emphasized that the central bank is in no hurry to adjust its policy stance, particularly as the economy remains strong.

Maximum of 2 cuts likely, one would be the base case, says DoubleLine's Jeffrey Gundlach

“It’s going to be a slow process to get to a hurdle to cut rates again. … I don’t think you’re going to see a cut at the next Fed meeting,” Gundlach said. “He’s obviously focused on the stability in the unemployment rate right now in terms of not feeling a need to cut rates.”

The notable fixed income investor thinks long-duration Treasury yields have more room to rise. He noted that the benchmark 10-year rate has increased about 85 basis points since the Fed cut rates for the first time last year.

“I think that rates have not peaked on the long end,” he said. “I think rates will have another move up on the long end.”

Gundlach cautioned against owning high-risk assets right now because of his view on long-term interest rates and his observation that valuations are high.

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Finance

Goldman Sachs (GS) earnings Q1 2025

Published

2 hours ago

April 14, 2025

Business Finance News

David Solomon, CEO of Goldman Sachs, testifies during a Senate Banking Committee hearing at the Hart Senate Office Building in Washington, D.C., on Dec. 6, 2023.

Win Mcnamee | Getty Images

Goldman Sachs is scheduled to report first-quarter earnings before the opening bell Monday.

Here’s what Wall Street expects:

Earnings: $12.35 per share, according to LSEG
Revenue: $14.81 billion, according to LSEG
Trading Revenue: Fixed Income of $4.56 billion and Equities of $3.65 billion, per StreetAccount
Investing Banking Revenue: $1.94 billion, per StreetAccount

Goldman Sachs may prove to be a beneficiary of the recent market environment.

On Friday, rivals JPMorgan Chase and Morgan Stanley each topped expectations for first-quarter results on booming equities trading.

Equities trading revenue surged 48% and 45% at the banks, respectively, thanks to volatility in the opening months of President Donald Trump’s tenure amid his efforts to reshape global trade agreements.

Buoyant markets during most of the quarter, which ended March 31, should also support the bank’s wealth and asset management division, which CEO David Solomon has called the growth engine of the bank.

But markets have churned since Trump escalated trade tensions last week, sowing uncertainty across the world’s largest economy. Goldman shares have dropped 14% this year through Friday.

Analysts will be keen to hear what Solomon has to say about his conversations with corporate clients and institutional investors during the tumult.

This story is developing. Please check back for updates.