Gundlach Says Listen to Bond Market, Not Fed on Rates

The video discusses how the bond market, rather than the Federal Reserve, is a better indicator of future interest rates. It highlights the discrepancy between the Fed's projected terminal rate and the market's pricing, with the market expecting a lower rate. Various opinions are presented, including those of bond managers and financial leaders like Jamie Dimon, on whether rates will rise above 5% or fall due to a potential recession. The video also examines the easing of financial conditions and how Powell's lack of response to market rallies might be seen as an endorsement.

What are the differing opinions on whether the Fed will need to raise rates above 5%?

What was the reaction of Powell regarding the bond market rally?