Bond King Gundlach says Fed panicked and short-term rates are headed toward zero

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“Bond King” 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, inter-meeting rate cut, particular when it’s 50 basis points … they typically cut pretty quickly again,” Gundlach said. “So I’m in the camp that the Fed is going to cut rates again, perhaps even in two week.

“We will see short rates headed toward zero.”

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