「New Bond King」 Gundlach: Inflation in the '4s' is Coming, Fed Rate Cuts Off the Table

May 18 — Jeffrey Gundlach, CEO of DoubleLine Capital LP and widely known as the “New Bond King,” told Fox News’ *Sunday Morning Futures* that there will be no interest rate cut at the Federal Reserve’s upcoming policy meeting. “In my view, a rate cut isn’t feasible right now when the 2-year U.S. Treasury yield is nearly 50 basis points higher than the federal funds rate,” he noted. Gundlach added that newly confirmed Federal Reserve Chair Kevin Warsh is taking over amid a “difficult period.” The ongoing war with Iran has driven oil prices up, which has in turn impacted U.S. inflation data. April’s Consumer Price Index (CPI) surged to 3.8%—the fastest pace since May 2023—and Gundlach predicts this upward inflation trend will persist. DoubleLine Capital’s model shows the next headline CPI reading will come in at a figure starting with a “4.” On the stock market, Gundlach commented: “The market is very expensive and highly speculative, but consistent earnings that beat expectations are fueling this speculative frenzy.”