Gundlach: Fed rate cut impossible, sees inflation entering 4% range

Jeffrey Gundlach, CEO of DoubleLine Capital and known as the 'New Bond King,' said there will be no interest rate cut at the next Federal Reserve policy meeting. According to BlockBeats, he argued that a rate cut is impossible with the U.S. two-year Treasury yield trading about 50 bp above the federal funds rate. Gundlach predicted that due to rising oil prices from the war in Iran, U.S. inflationary pressures are building again, forecasting that the next Consumer Price Index (CPI) reading will be in the 4% range, based on DoubleLine's model. Commenting on the stock market, he noted that valuations are very expensive and speculative, but corporate earnings continue to exceed expectations and are fueling a speculative frenzy.