Gundlach says Warsh may not deliver the easy money investors expected

DoubleLine Capital CEO Jeffrey Gundlach said Federal Reserve Chairman Kevin Warsh sounded more focused on inflation control than many investors had anticipated. Gundlach made the comments after Warsh and the Fed emphasized price stability and a return to 2% inflation. Warsh said the central bank is committed to delivering price stability and noted that inflation has not been at the Fed’s target for several years. He also declined to give an individual rate projection and signaled a review of the Fed’s communications approach. Gundlach said the stronger antiinflation stance suggests less chance of aggressive rate cuts and could support longterm U.S. Treasuries. He argued that Warsh has now tied his credibility to lowering inflation, which may limit expectations for easier monetary policy.