实际上，早在今年上半年，冈拉克就已经在警告美国就业数据走软的趋势；而在8月初，冈拉克就曾表示，他认为美联储应该在7月底的利率决议上降息。Although the US stock market is delighted by the significant interest rate cut by the Federal Reserve, 'bond king' Jeff Gundlach still believes that the rate cut came too late; Gundlach believes that the increasing number of unemployed in the United States indicates that the US economy has entered a recession.
Early Thursday morning Beijing time, the Federal Reserve announced its highly anticipated interest rate decision - the Fed announced a 50 basis point cut, the first rate cut in nearly four and a half years.
Although the US stock market is delighted by the significant interest rate cut by the Federal Reserve, 'bond king' Jeff Gundlach still believes that the rate cut came too late, as the increasing number of unemployed in the United States indicates that the US economy has entered a recession.
Gundlach: The rate cut by the Federal Reserve is too late.
In fact, as early as the first half of this year, Gundlach had been warning of the worrisome trend of weak employment data in the United States; and in early August, Gundlach stated that he believed the Federal Reserve should cut interest rates at the end of July.
Therefore, despite the Federal Reserve's decision to cut interest rates by 50 basis points this week, he still believes that the Fed's action is 'too late'.
Gundlach believes that the US economy has slowed to the level of a recession and points out that there are many concerns in the market about the weakness of the US job market.
He said, 'We are already in a recession... I see many layoff announcements.'
In the past year, despite continuous growth in the US GDP in recent quarters, recruitment data has been steadily slowing down. According to a report from consulting firm Challenger, Gray, & Christmas, layoff announcements by US companies increased by 193% last month. The report also shows that recruitment plans by US companies have reached the lowest level on record this year, with a 41% decline in recruitment plans in August compared to the same period last year.
Has the performance of the Federal Reserve in the past few years been unsatisfactory?
Nevertheless, most experts believe that the foundation of the US economy remains solid. The US GDP grew by 3% last quarter. Meanwhile, the unemployment rate remains close to a historic low point, with an unemployment rate of 4.2% in August.
However, Gonlac stated that he would give the Federal Reserve a grade of 'F' (unsatisfactory) for their performance in the past few years.
He believes that in order to lower inflation, the Federal Reserve raised interest rates by 525 basis points in 2022 and 2023, but they should have reacted to inflation pressures earlier, which would have prevented interest rates from staying too high for an extended period of time.
Now, as inflation in the US has significantly cooled down and employment market data continues to decline, Gonlac believes that the Federal Reserve's pace of interest rate cuts has also slowed down.
He said, 'The Federal Reserve is far behind the situation, and they should take collective action.'
Editor/ping
