Jeffrey Gundlach: Fed Data Dependency at a New High

DoubleLine CEO-CIO and Founder Jeffrey Gundlach joins CNBC’s Scott Wapner to discuss the key takeaways from Wednesday’s FOMC meeting and Federal Reserve Chair Jerome H. Powell’s press conference, recorded on Jan. 29, 2025.

Jeffrey Gundlach “shares his perspective on the Fed’s current stance, highlighting that “the market seems to have taken this at least a bit hawkish” and that there is “no hurry to cut rates.” Chair Powell emphasized the Fed’s data dependency, noting that “we’re very, very data dependent,” to which Mr. Gundlach remarks, “It seems like a new high has been reached in data dependency.”

Mr. Gundlach also delves into the implications of the Fed’s policies on the bond market, pointing out that “since the first Fed rate cut back in September, the two-year Treasury yield is up by 60 basis points.” Mr. Gundlach highlights some potential risks in the credit markets, drawing parallels to the subprime crisis, and advises investors to be cautious: “We’re starting to see retrenching of credit risk... It’s a slippery slope, something to watch out for.”

Additionally, he discusses the broader economic outlook, including inflation, unemployment and the impact of tariffs. Mr. Gundlach notes that “the inflation rate has been drifting higher by a little bit,” and “with the unemployment rate being at 4.1%, it’s going to be a slow process to get to a hurdle to cut rates again.”