'New Bond King' Gundlach: Warsh is by no means a rate-cut advocate, repeatedly emphasizes price stability goal

BlockBeats News, June 18, DoubleLine Capital CEO Jeffrey Gundlach, known as the 'New Bond King,' stated on a CNBC program that the hawkish signals sent by the new Federal Reserve Chairman Kevin Warsh exceeded the expectations of many investors. This underscores his commitment to restoring price stability and indicates his lack of interest in accommodative monetary policy. Gundlach noted that Warsh's repeated emphasis on the price stability goal reduces the risk of the Fed implementing overly accommodative policies that could reignite inflation. He said this strengthens the case for holding long-term U.S. Treasury bonds. Warsh has essentially staked his credibility on controlling inflation, making the likelihood of significant rate cuts much lower. U.S. short-term interest rate futures currently reflect a higher probability of the Fed raising rates before September than maintaining rates at their current level.