Gundlach Predicts Rate Cuts Despite Inflation Concerns

Jeffrey Gundlach of DoubleLine Capital anticipates rate cuts towards the end of this year and into 2026, despite inflation rates at 3.5%. During a CNBC interview, he highlighted that rising unemployment could further encourage rate reductions, even with current inflation levels.

In a revealing CNBC interview, Jeffrey Gundlach of DoubleLine Capital stated that he anticipates rate cuts by the end of the year and continuing into 2026. This expectation holds even if the inflation rate stabilizes at 3.5%.

Gundlach further explained that if the unemployment rate rises, there will be stronger incentives for monetary policy to lean towards lowering interest rates.

The renowned investor's insights suggest that economic measures may diverge from strict inflation targets, focusing instead on broader economic indicators like unemployment.

(With inputs from agencies.)