Jeffrey Gundlach, Wall Street’s bond king and Founder and Chief Executive Officer of DoubleLine Capital, expressed his thoughts on what the US President Trump intentions are ahead of the 2020 US Presidential election.
Key Quotes (via Moneyandmarkets):
I think maybe he’s playing a dangerous game of intentionally weakening the economy so the Fed cuts rates and monetary easings work with a lag.
Cutting rates now would probably be beneficial in the summer of next year, ahead of the election.
Also if you put on tariffs, or scare consumers, then maybe you can take the tariffs off and you’re moving consumption from today until 2020.
That’s potentially a strategy. As I say, it’s pretty dangerous. It’s hard to time the economy by, you know, blunt instruments. I don’t know, it seems like he’s working really hard to get the Fed to cut rates “” and the bond market is certainly helping.
You know the bond market is telling the Fed they’re completely on a different planet.
I give a 75% chance of recession prior to the election and have for months. I know that the markets and the rhetoric has come around to something close to that “” but when I first said it, people thought I was crazy.
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