Billionaire “Bond King” Jeffrey Gundlach points to “absolutely full on recessionary” economic indicators as he warns of an imminent downturn. “It’s pretty clear that we have the look of soon to be at the front end of a recession,” the investor said, highlighting weakening demand as delivery delays head toward a 30-year low. “We’re at very low unemployment. That is what is keeping the Fed on the snugger side,” Gundlach added. According to former Home Depot CEO Robert Nardelli, continued consumer-price pressures suggest the Fed could hike interest rates once again. “Inflation is still exceeding wage increases. I think we still got a way to go,” Nardelli noted. In other news, JPMorgan cited new key signs of de-dollarization Monday. According to its strategists, the U.S. share of global exports is now at a record low of 9%, and breaking down the global central bank FX reserves, the dollar’s share is also at a record low of 58%.

Markets Insider/Zahra Tayeb
Billionaire bond investor Jeffrey Gundlach dials up his warning of a US recession, pointing to signs of falling demand

Billionaire investor Jeffrey Gundlach dialed up his warning about an imminent US recession, pointing to fresh signs of falling demand in the economy.

Speaking in an investor webcast, the DoubleLine Capital CEO said key economic indicators looked “absolutely full on recessionary,” per CNBC, referring to trends in the manufacturing and services.

Forecasts for the world’s largest economy have been growing increasingly grim following the past year’s surge in interest rates and amid a credit squeeze caused by the recent banking turmoil.

Continue reading, here.

Markets Insider/Zahra Tayeb
Inflation is alive, the Fed could hike rates again, and businesses are facing greater uncertainties today than in the past 50 years, former Home Depot CEO says

There’s still work to do for the Federal Reserve to tame inflation – and US businesses are currently facing more uncertainty than in the past 50 years, former Home Depot CEO Robert Nardelli said.

Nardelli agreed with Fox Business’ Neil Cavuto in an interview on Tuesday that consumer-price pressures remain high in the US economy, thanks to high fuel prices.

While inflation has cooled significantly from mid-2022 highs, it still remains well above the Fed’s 2% target. April’s reading showed consumer prices rose at an annual rate of 4.9%.

You can read the full article, here.

Kitco News/Anna Golubova
Signs of de-dollarization: JPMorgan points to FX reserves

With many, including the IMF’s managing director, still not seeing a threat to the U.S. dollar’s hegemony, JPMorgan outlined signs that de-dollarization is happening.

The fastest Federal Reserve’s monetary policy tightening in decades, mixed in with aggressive use of sanctions, such as freezing Russia out of the global banking system, are pushing the BRICS nations (Brazil, Russia, India, China and South Africa) away from the dollar. And there is evidence of this, according to JPMorgan’s strategists Meera Chandan and Octavia Popescu.

In a note on Monday, strategists said that even though the overall dollar usage is still within the historical range, its utilization is much more “bifurcated under the hood.”

You can read the full article, here.

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