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“Bond King” and DoubleLine Capital CEO Jeffrey Gundlach said Thursday that he thinks the Federal Reserve panicked in chopping fascination rates earlier this week and that brief-time period U.S. premiums are headed for zero.

“If we glimpse at historical past, at the time the Fed does a stress, inter-assembly level reduce, certain when it really is 50 basis details … they generally minimize fairly rapidly once again,” Gundlach reported. “So I am in the camp that the Fed is going to slice rates again, potentially even in two weeks.”

“We will see small rates headed toward zero.”

Gundlach included:

“When I say panicked, it isn’t going to signify it is really not justified. Occasionally worry is justified,” he included. “Business activity is very likely to agreement … I obtained numerous e-mails right now of clients that ended up preparing on visits to DoubleLine indicating they’re canceling them.”

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