DoubleLine Capital's Gundlach: Unlikely that rates will be changed until the fall - CNBC interview

Jeffrey Gundlach, CEO of DoubleLine Capital, has stated that the Federal Reserve is unlikely to implement additional rate cuts during the remainder of Jerome Powell’s tenure as chair, which is set to conclude in June 2026. Speaking on CNBC’s "Closing Bell," Gundlach emphasized that the Fed is maintaining a balanced approach to monetary policy, with inflation showing signs of moderation and unemployment stabilizing.

Powell, who has two policy meetings remaining in March and April, has signaled a cautious stance, noting that the current economic environment does not necessitate immediate action. The Fed has maintained its overnight lending rate within a range of 3.5% to 3.75% since its most recent meeting, with officials indicating that economic activity is expanding at a solid pace.

While Fed funds futures suggest the possibility of two quarter-point cuts by year-end, Gundlach remains skeptical, asserting that conditions for rate reductions have not yet materialized. He also highlighted the importance of long-term interest rate trends and advised investors to consider international equities as a strategic allocation to hedge against dollar volatility.