Jeffrey Gundlach Forecasts Zero Fed Rate Cuts in 2026, CPI to Hit 4%

According to Jeffrey Gundlach, CEO of DoubleLine Capital, appearing on Fox News’ Sunday Morning Futures, the likelihood of the US Federal Reserve cutting interest rates in 2026 is virtually zero. Gundlach argued that a rate cut is impossible when the two-year Treasury yield is approximately 50 basis points higher than the federal funds rate. He predicted the US Consumer Price Index, which stood at 3.8% in April, will rise further to 4%, citing the war in Iran and rising oil prices as drivers of renewed inflationary pressure. Concerns about 2026 US inflation are also reflected on prediction market Polymarket, where the probability of CPI exceeding 4% this year has surged to 97%, up 63 percentage points from its previous level.