Gundlach: New Fed Chair Warsh Signals Hawkish Stance, Not Rate-Cut Friendly

According to Jeffrey Gundlach, CEO of DoubleLine Capital, speaking on CNBC today (June 18), new Federal Reserve Chair Kevin Warsh is signaling a hawkish stance that exceeds many investors' expectations. Gundlach noted that Warsh's repeated emphasis on price stability and limited interest in loose monetary policy strengthen the case for holding long-term U.S. Treasury bonds and reduce risks of excessive policy loosening reigniting inflation.

U.S. short-term interest rate futures currently reflect a higher probability of a Fed rate increase before September than a scenario of holding rates unchanged.