Part 3/10:
In contrast, Jeffrey Gundlach took a steeper view on the Fed's current strategies and their reactive nature to inflation, arguing that any hope for inflation to revert to a 2% standard is dissipating. He noted that recent press conferences have showcased how this friction between inflation and unemployment metrics puts Powell’s tactical approach at risk. Echoing Bianco's sentiments, he believed that inflation is unlikely to fall significantly, which could lead to complex outcomes, including rising unemployment in a high-inflation environment.