(CNBC) “Bond King” and DoubleLine Capital CEO Jeffrey Gundlach said Thursday that he believes the Federal Reserve panicked in cutting interest rates earlier this week and that short-term U.S. rates are headed for zero.
“If we look at history, once the Fed does a panic, intermeeting rate cut, particularly when it’s 50 basis points ... they typically cut pretty quickly again,” Gundlach said. “I’m in the camp that the Fed is going to cut rates again, perhaps even in two weeks” during its regularly scheduled meeting.
The benchmark 10-year Treasury note yield hit an all-time low under 0.9% just after the longtime bond investor made his comments on CNBC’s “Halftime Report” around 12:40 p.m. ET. The 2-year U.S. rate hit also hit a record low of 0.554% earlier in the session.
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