Interest Rate Forecast: DoubleLine Gundlach Predicts Just 2 Rate Cuts for 2024 as Fed Fights Inflation

Los Angeles, CA – Jeffrey Gundlach, CEO of DoubleLine Capital, predicts that the Federal Reserve’s dot plot will reveal projections of only two rate cuts in 2024. This updated forecast comes after previously indicating three interest rate cuts for the same year.

The dot plot serves as a tool to showcase the expectations of 19 Federal Open Market Committee (FOMC) members regarding future interest rates, projecting rates through the end of the current year and beyond to 2026. Gundlach, a prominent fixed income investor, had previously stated that he anticipated no more than one interest rate cut in light of the Fed’s ongoing battle against inflation.

In another development, after-hours trading saw significant movements in the stock market, with companies like Oracle and Rentokil garnering attention. Oracle experienced a nearly 9% surge in its stock price following announcements of cloud deals with Google and OpenAI. Despite falling short of expectations in its fiscal fourth-quarter results, Oracle reported adjusted earnings of $1.63 per share on revenue of $14.29 billion.

Furthermore, Rubrik, a cloud data management company, saw a 1.4% increase in its stock value after surpassing revenue expectations for the first quarter. Rentokil Initial, the parent company of Terminix, witnessed a 7.5% jump in its stock price after revelations that investor Nelson Peltz’s Trian Partners had acquired a significant stake in the pest-control company, becoming one of its top-10 shareholders.

On a separate note, stock futures showed minimal movement on Tuesday night, with slight decreases observed in S&P 500 and Nasdaq 100 futures, while Dow futures remained just below the flatline. These fluctuations indicate a cautious approach among investors as they await further market developments.