The Federal Reserve and Chairman Kevin Warsh on Wednesday followed the script on interest rates closely.
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The median projection called for the federal funds rate to end 2026 at 3.8%, a quarter percentage point above the current target range.
Gundlach said Warsh’s stance reduces the risk of overly accommodative monetary policy that could reignite inflation and push longer-term borrowing costs higher.
The S&P 500 tumbled more than 1% in Wednesday’s session, with losses steepening during Warsh’ innagural press conference as chair.
U.S. Treasury yields rose on Wednesday after the Fed held interest rates steady during Kevin Warsh’s first policy meeting as chairman.
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