Gundlach warns of sharp rise in long-term interest rates if Federal Reserve remains stagnant

Jeffrey Gundlach (Gundlach) warned that inflation remains persistent, noting that the CPI trajectory mirrors the 1970s and suggesting real inflation could be as high as 7%. He highlighted severe divergence in credit markets, widening spreads for AI-related corporate debt, and cautioned that the S&P 500 is in a dangerous state given its high valuation and heavy concentration in tech stocks.