Fed's Rate Decision Seen As Predictable, Traders Bet On Treasury Gains

According to Odaily, Jeffrey Gundlach, known as the 'New Bond King,' has stated that the Federal Reserve's upcoming interest rate decision is one of the most predictable in recent years, with expectations of no change. Despite the widespread anticipation that the Fed will maintain stable rates during this week's meeting, traders have increased their bullish bets on U.S. Treasury bonds. They are hopeful that Federal Reserve Chair Jerome Powell will signal a potential rate cut in the March meeting. Gundlach emphasized that Powell's press conference should focus on the dual mandate of price stability and full employment, noting that the relationship between these two objectives is currently under significant strain.