Core Viewpoint - The next Federal Reserve chair chosen by President Donald Trump is expected to be a dovish figure, leading to potential interest rate cuts after Powell's departure, which may weaken the dollar and not aid long-term rates [1] Group 1 - Gundlach believes that Powell's upcoming rate cut may be his last, as he appears more focused on rising unemployment [1] - Gundlach expresses skepticism about the need for quantitative easing, noting that the private credit market is absorbing a significant amount of supply [1] - Gundlach does not consider this a "hawkish rate cut" [1]

Core Viewpoint - The Bank of England indicates that high tariffs increase the likelihood of corporate defaults, and the risk of significant declines in risk asset prices remains elevated [1] Group 1 - High tariffs are linked to an increased probability of corporate defaults [1] - There is a historical pattern of breakdowns in the performance of the dollar during periods of stress, leading to increased hedging demand [1] - Increased hedging by foreign investors in U.S. assets may weaken the U.S. dollar [1]