BlockBeats News, May 18th - Jeffrey Gundlach, CEO of DoubleLine Capital LP and known as the "New Bond King," stated on Fox News' "Sunday Morning Futures" that investors will not see a rate cut at the Federal Reserve's next policy meeting. "In my opinion, when the 2-year U.S. Treasury yield is nearly 50 basis points above the federal funds rate, a rate cut is simply not possible."

Gundlach said that Kevin Warsh, recently confirmed as Federal Reserve Chair, took over the position during a "difficult time." Due to the war with Iran pushing up oil prices, which in turn affected the U.S. inflation report, Gundlach predicted that after the Consumer Price Index (CPI) surged by 3.8% in April (the fastest pace since May 2023), this upward trend would continue. Gundlach stated that DoubleLine Capital's model indicates that the next reading for overall CPI will start with a '4'.

Regarding the stock market, Gundlach said, "The market (valuation) is very expensive, highly speculative, but earnings continue to outperform expectations, fueling the speculative frenzy."