US economy already in recession; Fed rate cuts very late, says bond king Jeff Gundlach

The US economy is currently in a volatile state, starting odd the various market forces, including the normalizing inflation levels, jobs data, and of course, the US elections in November. According to Jeff Gundlach, also known as the 'Bond King', the recession period has already come in for the US economy and the US Fed are quite late in implementing the Fed rate cut for bringing the national economy back on track.

Has the US recession already arrived?

If Gundlach's words are correct and the recession has already hit the US economy, this could easily mean that the Fed rate cuts that were announced just yesterday by Fed Chair Jerome Powell, could do little to minimal effect to put the US economy on the right track, as other forces would deteriorate the market conditions.

Mounting job losses over the past two months are the biggest indicator that the recession has finally arrived in the United States, feels Gundlach, no matter what other analysts are saying about the US recession still being quite away and the Fed rate cuts could help in delaying that.


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Gundlach fears more unemployment

Even though the Federal Reserve announced a big 50 bps rate cut, which was last seen during the economic crisis of 2008, Gundlach feels that more unemployment and job cuts could be on the cards, as recession has already started peddling its influence across the US markets.

Even though the GDP has climbed steadily over the past few quarters, employment levels have slowed down gradually, and has now hit rock bottom, at least in August and September, with the number predicted to fall even more, leading to the US elections. Meanwhile, these market circumstances are the topmost priority of US Presidential candidates Donald Trump and Kamala Harris, both of whom have talked about these issues in their campaign speeches as well as the recently concluded Presidential debate.

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FAQs:

Is the US economy in recession?
The US economy has seen a terrible drop in employment levels, which is a big indicator that the nation is currently facing severe recession troubles.

Is the US Fed Reserve introducing rate cuts?
The Fed has already announced a major 50 bps rate cut to slow down the arrival of the recession and aggressively control the condition of the US economy.