DoubleLine founder Jeff Gundlach says the Fed’s decision to hold rates is puzzling as inflation heads toward 4% and markets rally.

DoubleLine founder Jeff Gundlach appeared on CNBC’s “Closing Bell” on Wednesday, shortly after the Federal Reserve announced it would keep policy rates unchanged at its October meeting. Gundlach, a well‑known bond investor, challenged the central bank’s restraint, asking “What are you waiting for?” while pointing to a strong macro backdrop highlighted by Fed Chair Kevin Warsh.

Fed’s current stance versus market signals

• The Fed left its target range at 3.75%‑4% despite a 2‑year Treasury yield of about 4.7%, a spread Gundlach says signals more tightening is needed.
• He noted that headline CPI is on track for a 4% annual rate and the commodity index is rising in a bull market.
• CME’s FedWatch tool still shows an 85% probability of a 25‑basis‑point hike at the December meeting.

Gundlach’s view on past and future hikes

• After a 25‑bp increase in September, Gundlach argued the Fed should have moved 50 bps in one step rather than incremental moves.
• He warned that without a break in oil prices—currently above $100 a barrel—the Fed is likely to raise rates in December.
• Warsh announced that only six of the eight scheduled meetings in 2027‑2028 will involve a vote on the federal funds rate, a reduction Gundlach welcomed as a way to give policymakers more data time.

What traders are watching next

• Key inflation releases and oil price trends that could influence the December decision.
• The 2‑year Treasury yield as a benchmark for policy tightness.
• Any further comments from Fed officials on the upcoming reduced‑meeting schedule.

Related news

• Fed holds rates steady, bitcoin barely moves as December hike looms
• Gold slips toward $4,000 as oil above $100 clouds Fed outlook
• Obr downgrades uk growth forecast for 2027 despite healey budget
• Bitcoin and gold hold near key levels ahead of Fed decision

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This article is compiled from international market news for information only. It is not investment advice.