Investment advisor of the "new bond king": Prepare for the "shadow Federal Reserve" to cut interest rates

Jeffrey Sherman, the Deputy Chief Investment Officer (CIO) of DoubleLine Capital managed by "Bond King" Jeffrey Gundlach, has engaged in bond trading that includes buying two-year U.S. Treasury bonds and shorting ten-year U.S. Treasury bonds to hedge against the risk of President Trump firing Federal Reserve Chairman Jerome Powell. This trade is based on a bet that the yield curve will steepen, and it has gained renewed attention following reports that Trump is seeking to replace Chairman Powell. Sherman stated that the concept of a "shadow Federal Reserve" will support this trade, as the market will closely scrutinize Powell's tenure and anticipate an immediate interest rate cut after the new chairman takes office