Fed Holds, Gundlach Sees December Rate Hike
The Fed held rates at 3.75%–4.00% in a 10-2 vote with two hawkish dissenters. Jeffrey Gundlach's base case is now a December hike, and he warns of concentrated AI equity exposure risks.
What we know
Fed voted 10-2 to hold, with Hammack and Governor Cook dissenting in favor of a hike — an account on X. DoubleLine CEO Gundlach called a December hike his 'base case' — another account on X, another account on X. He recommends 30% equities (equal-weight S&P only), 30% bonds, 20% commodities, 20% dry powder — another account on X — and explicitly warns of risks from concentrated AI exposure — another account on X. CalebFranzen read a -3% VIX drop as a bullish signal — another account on X. Eva Beylin argued AI stock wealth is a direct contributor to inflation, giving the Fed cover to keep hiking — another account on X.
By the Global Eye 24 desk, with AI assistance. Updated as the story develops. Spot an error? Write to corrections@globaleye24.com.