「New Bond King」 Gundlach: Powell is by no means a Dovish, emphasizing price stability target multiple times

BlockBeats News, June 18th - Jeffrey Gundlach, CEO of DoubleLine Capital and known as the "New Bond King," stated on a CNBC program that the hawkish signal released by the new Fed Chair Kevin Warsh was stronger than many investors had expected, highlighting his commitment to restoring price stability and indicating his lack of interest in loose monetary policy.

Gundlach stated that Warsh's repeated emphasis on the price stability target has reduced the risk of the Fed pursuing excessively loose policies that could reignite inflation. He said this strengthened the case for holding long-term U.S. Treasuries. Warsh has effectively bet his reputation on controlling inflation, making a significant rate cut less likely.

Current U.S. short-term interest rate futures reflect a higher probability of a Fed rate hike before September than of keeping rates unchanged.