Closing Bell Closing Bell: The Future of the Rally 8/4/25
Aug 4, 2025
Join Jeffrey Gundlach, the founder and CEO of DoubleLine, as he dives into the complexities of the US economy and speculates on potential interest rate cuts by the Fed. Topics range from the intricate balance between inflation control and employment, to the implications of a possible leadership change at the Federal Reserve. Alongside industry experts Chris Hyzy and Cameron Dawson, they dissect market recovery strategies amid volatility, highlighting the varying performances of small-cap and large-cap stocks while maintaining a cautious outlook on economic shifts.
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Fed Delays Rate Cuts Amid Mixed Data
- The Fed delayed rate cuts due to mixed economic data and a strong jobs report revision.
- The two-year Treasury yield suggests the market expects rate cuts despite Fed's current stance.
Limited Inflation Signals Despite Dollar Drop
- The falling US dollar contrasts with stable commodity prices, suggesting inflationary pressure is limited.
- Money supply growth remains moderate, indicating inflation might not continue rising sharply.
Fed’s Dual Mandate Tension
- The Fed faces tension between controlling inflation and addressing rising unemployment.
- Rising unemployment will likely cause the Fed to prioritize job market support over inflation.