Jeffrey Gundlach says the bond market is telling Warsh the Fed has to start acting on inflation

> DoubleLine Capital CEO Jeffrey Gundlach said the Treasury market is signaling that the Federal Reserve will need to do more than talk tough if policymakers are serious about reaching their 2% inflation target. > “If you really want to get to 2%, I think you have to raise interest rates,” Gundlach said on CNBC’s “Closing Bell” Wednesday after the Fed’s latest policy decision. “I think getting 2% is going to take a long time. We might not get there over the course of the next couple of years.” > The Fed left its benchmark interest rate unchanged at a range of 3.5% to 3.75%, a decision that was widely expected. The move was not approved unanimously, however, with three policy members dissenting in favor of raising rates by a quarter percentage point. > “The two-year Treasury rallied today because it thinks the Fed is taking its time,” he said. “And the long bond yield went up significantly after the press conference, because the bond market vigilantes are saying, ‘If you really want us to believe your rhetoric, you’ve got to start acting.’” > The benchmark 10-year Treasury yield rose more than 7 basis points to 4.681%, while the 30-year bond yield surged to 5.213% for its highest level since 2007. Meanwhile, the policy-sensitive two-year Treasury yield fell 3 basis points to 4.244%. https://www.cnbc.com/2026/07/29/gundlach-says-the-bond-market-is-signaling-the-fed-has-to-act-on-inflation.html