Jeffrey Gundlach warned in an interview with CNBC that there is a real risk of higher inflation and of monetary policy becoming too loose. He said Fed Chair Jay Powell places too much emphasis on job creation and should focus more on unemployment, noting that the Sahm rule—where a 0.5 percentage-point rise in the 3‑month unemployment average versus its 12‑month low would signal recession—is not currently flashing. Gundlach added that a 25 bp cut would be reasonable and aligns with where long government yields are set, which in his view "don't want the Fed to ease too much." #inflation #Fed

Gundlach described deep disagreement inside the central bank about the path for rates, with some arguing for up to five cuts by year-end. He warned of the political risk that a Fed leader favoring extremely low rates could raise inflation expectations and pressure long-term bonds. Corporate bonds, he said, are "quite expensive." He sees the biggest opportunity in a continued weakening of the dollar, which he expects to support foreign markets for dollar investors and to help lift gold and mining stocks. #USD #gold

Housing shortage and high mortgage rates could also push the Fed toward measures aimed at lowering long-term yields, Gundlach argued, including potential yield-curve management to directly influence long rates and mortgage costs. He noted oil prices are stable while gold has surged—linking that to a weaker dollar and inflation concerns. #FiatNews