Back
Will the Federal Reserve Continue to Cut Rates Under Jerome Powell?
DoubleLine Capital CEO Jeffrey Gundlach asserts that the Federal Reserve is unlikely to implement any further interest rate cuts under the leadership of Jerome Powell, particularly with only two policy meetings remaining in Powell's term.
What Factors Are Influencing Gundlach's Prediction?
Gundlach's predictions are informed by the current economic landscape and Powell's recent statements regarding inflation and employment rates. He noted that inflation has moderated compared to previous fears, and the unemployment rate is stabilizing rather than climbing significantly. During a recent appearance on CNBC's Closing Bell, he stated,
“I think I would bet pretty heavily that there’s not another rate cut under Jay Powell.”
Powell's forward-looking comments suggest that the Federal Reserve is not viewing current policy as excessively restrictive. On January 28, 2026, the Fed opted to maintain its overnight lending rate in the range of 3.5% to 3.75%, indicating an ongoing balanced assessment of economic activity[^1].
Retail trading has evolved. You no longer need to settle for slow execution or high fees. You can access institutional-grade conditions from your very first trade.
🏛️ Upgrade Your Execution: Experience raw spreads and <12ms latency. Create your Live Account now and trade the difference.
How Many Meetings Does Powell Have Left?
Jerome Powell's tenure as the Fed chair is coming to a close, with only two policy meetings scheduled before his term expires in April 2026. This limited timeframe heightens the speculation regarding the Fed's immediate future monetary policy actions[^1].
What Are Market Expectations for Future Rate Cuts?
Despite Gundlach's assertions, market sentiment remains somewhat split. Fed funds futures trading indicates expectations of potential rate cuts later in 2026, but these would likely not occur until after Powell's successor is confirmed in June. This uncertainty is reflected in the recent comments made by Powell, emphasizing that economic activity is expanding at a solid pace and the Fed is less concerned about inflation than previously feared[^1].
Additionally, Gundlach has suggested that investors should look towards international equities, particularly positioning about 30% to 40% of their portfolios in this area. This strategy anticipates that local currencies will appreciate against the U.S. dollar, benefiting investors who diversify globally[^1].
In a market where every pip counts, your broker's infrastructure is your competitive advantage. Low spreads are a good start, but true performance comes from deep liquidity and reliable execution during high volatility.
🏆 See the Difference: Why do professional traders switch to Aurra? From our liquidity partners to our execution speeds, discover our full competitive edge at Why Choose Us.
Key Takeaways
- No Further Cuts Expected: Gundlach believes there will be no additional rate cuts under Powell, who is emphasizing economic stabilization.
- Limited Meetings: Powell's term concludes with only two Fed meetings left before a new chair is appointed.
- Market Expectations: Future rate cuts might be anticipated later in 2026 but after Powell's tenure, reflecting ongoing market uncertainty.
- International Investment Focus: Gundlach recommends diversifying investment portfolios by increasing exposure to international equities.
To see how this data impacts your investments, subscribe to our daily market briefing for real-time updates.
References
[^1]: Yun Li (2026). "DoubleLine’s Jeffrey Gundlach sees no more Fed rate cuts under Jerome Powell (https://www.cnbc.com/2026/01/28/doublelines-jeffrey-gundlach-sees-no-more-fed-rate-cuts-under-jerome-powell.html)". CNBC. Retrieved January 28, 2026.
Keywords: Federal Reserve, Jerome Powell, Jeffrey Gundlach, interest rates, market predictions, economic outlook, international equities
The Official Aurra Markets:
There is only one Aurra. We are defined by our Double-R spelling and our commitment to transparency. ❌ Not a prop firm. ❌ Not affiliated with Aura Capital. ✅ We are a fully registered International Brokerage (Reg: 2025-00208).
