DoubleLine founder Jeff Gundlach told CNBC it is unclear why the Federal Reserve is waiting to raise rates further after holding them unchanged at its October meeting. After the Fed's 25-basis-point hike in September, he argued it should have raised rates by 50 basis points at once rather than gradually, and he worried that the scale of U.S. inflation, still above the Fed's 2% annualized target, was not fully respected. Fed Chairman Warsh also said that one meeting in 2027 and two in 2028, out of eight scheduled, will focus on monetary policy strategy with no rate vote. CME's FedWatch tool shows an 85% chance of a 25-basis-point hike at the December meeting, and the Fed said it will use further information to return inflation to its 2% goal.
Summary written by Upside AI from the original article. Read the source for full details.
Keywords
Fedinterest ratesinflationbonds
Open a keyword to see other news on the same topic.
Related tickers and likely impact
DXY
▼ Likely negativeRelevance: medium
| Market | Currencies |
|---|---|
| Close on 10/27/2026 | 102.37 |
| Change that session | +0.35% |
XAU/USD
▲ Likely positiveRelevance: medium
| Market | Gold |
|---|---|
| Close on 10/27/2026 | 4,060.32 |
| Change that session | +1.07% |
QQQ
▲ Likely positiveInvesco QQQ Trust
Relevance: low
| Market | US stocks |
|---|---|
| Sector | ETF |
| Close on 10/27/2026 | 721.23 |
| Change that session | +1.27% |
SPY
▲ Likely positiveSPDR S&P 500 ETF
Relevance: low
| Market | US stocks |
|---|---|
| Sector | ETF |
| Close on 10/27/2026 | 769.72 |
| Change that session | +0.57% |
Impact is scored by AI from the headline and may be wrong. It is not investment advice.
Related news
- Why higher yields are making bonds attractive again
J.P. Morgan Asset Management global market strategist Stephanie Aliaga said higher yields have made fixed income more attractive in portfolios. She noted clients are wary of the AI trade, though she sees its fundamentals, particularly AI-related revenue growth, as still robust, while the market is entering a more discerning phase where higher financing costs separate business models. She still views the outlook for risk assets as constructive but stressed the need for protection in portfolios, as past recessions were largely missed by forecasts. On the Fed's expected December hike and possibly another in Q1 or Q2 next year, she believes this is already priced in; if inflation cools and geopolitical tensions do not flare up, markets could see relief that might also help parts of the AI trade that had become overstretched.
- Fed rate hikes are coming, but not this week: CNBC survey
A CNBC survey of 30 fund managers, strategists and economists found 93% expect the Fed to pause at this week's meeting, while 76% anticipate a rate hike in December. More than half expect the Fed to hike about two times next year. Respondents forecast GDP growth of 2.4% this year and a 26% risk of recession in the next year, with CPI easing from 3.7% to 3.6% this year and 2.6% in 2027. The 10-year Treasury yield is expected to stay above 5% this year and dip to 4.8% in 2027.
- Could the Fed surprise with its rate decision this week?
The Fed is expected to hold its policy rate at 3.75-4% at its 27-28/10 meeting, even though September CPI and PPI both rose more than forecast and inflation has made little progress back toward the 2% target. Chair Kevin Warsh gave no signal on 16/10 that would change market expectations, cutting the odds of an October hike to about 15%. Robert Kaplan of Goldman Sachs said doing nothing is the option with the fewest hurdles, while Claudia Sahm argued the Fed has enough reason to act this week. The 10-year Treasury yield, which topped 5.3%, the highest in 24 years, fell 0.19 percentage points to 4.95% on 22/10 as tech stocks were sold off. Fed officials remain divided, with Logan, Hammack and Kashkari having opposed the July decision to hold rates.
- Why Bonds Stumbled and Stocks ( Mostly ) Stood Strong in Q3 , and What Lies Ahead for Investors
Bonds fell broadly in the third quarter of 2026 as inflation worries, government deficit concerns and the Federal Reserve's September rate hike pushed yields higher, while US stocks gained about 1%. The Fed raised its federal-funds target rate by 0.25 percentage points in September, its first hike since 2023, and the ECB, Bank of Japan and Reserve Bank of Australia each raised rates by 25 basis points. Morningstar says the 10-year real yield rose to 2.93%, driving most of the increase, while the 10-year breakeven inflation rate ended September at 2.36%, suggesting investors are not bracing for runaway inflation. Mortgage rates passed 7.25% and municipal bonds had their worst month since 2008. In 2026 through September, US stocks gained about 12%, energy rose nearly 40%, utilities and industrials fell about 12%, and small-caps lost 5.6%.
- The Growth Docket Vol . I , No . 3 – The Price Of Money , The Value Of Growth
The 10-year US Treasury yield hit 5.23 percent on Friday, its highest since 2007, and the 30-year rate reached 5.49 percent, the highest since 2004. The article attributes higher rates to four forces: the conflict with Iran pushing up oil and inflation, AI data center spending estimated at $1.37 trillion this year and largely borrowed, tariffs adding about half a point to inflation, and a shrinking workforce as net immigration slowed. The federal deficit of about $2 trillion a year means more government borrowing. The extra yield on high-yield corporate bonds over government debt is 2.8 percentage points, below its ten-year average, but higher base rates mean buyers pay more to borrow and expect less when they sell. Markets put roughly a two-in-three chance on the Fed raising rates again on October 27 and 28.
- Fed Minutes Show Another Rate Hike Is Likely This Year as Kevin Warsh FOMC Battles Persistent Inflation . Here Why That Signal Matters for Stocks and Bonds Heading Into Year - End .
Minutes from the latest Federal Open Market Committee (FOMC) meeting, released Oct. 7, indicate Kevin Warsh and fellow policymakers are considering another rate hike in 2026. Inflation remains sticky, with CPI up 3.7% year over year in September 2026, so after September's increase the Fed may raise rates again before year-end, by a small or moderate amount. The article explains that higher rates raise borrowing costs, which can curb consumer spending and business investment and typically weigh on stocks. It argues the current tightening appears smaller than in 2022, when the S&P 500 fell about 19% and the Nasdaq-100 about 33%, so investors should be cautious but not panicked. For bonds, rising rates typically push yields up and prices down, which can make bonds more attractive when U.S. government yields reach 5% or higher.
Related markets
Latest news
- Bessent says 'not necessarily' a mistake if the Fed hikes again
US Treasury Secretary Scott Bessent spoke to CNBC after the Federal Reserve's latest policy decision, just days before an election that will determine the balance of power in Washington. The Fed kept interest rates unchanged, as the market had widely expected, after pausing its rate hikes. Bessent said it would be 'not necessarily' a mistake if the Fed needed to raise rates at its December meeting. Fed funds futures traders put the probability of a December rate hike at more than 83%. Bessent is a key confidant of President Donald Trump, whose Republican Party is counting down to next week's midterm elections, and the outcome of several key races could determine whether the GOP retains total control in Washington.
- Nvidia's $12.9 billion Hugging Face deal draws DOJ scrutiny
The U.S. Department of Justice is examining Nvidia's acquisition of Hugging Face, an open-source platform for hosting and testing AI models, and how the deal may affect competitors. CNBC confirmed the probe with a source, after Reuters first reported the inquiry on Wednesday. Nvidia announced the nearly $13 billion deal in September, saying it would expand access to AI for developers and institutions worldwide. Hugging Face has over 18 million users and 200,000 companies, which share at least 3 million models and 500,000 datasets on the platform. The deal is Nvidia's second-biggest purchase after its $20 billion Groq asset deal at the end of last year, which also drew DOJ scrutiny. Nvidia declined to comment.
- Alphabet Q3 earnings: Google misses Wall Street estimates
Alphabet (GOOGL, GOOG) reported third-quarter earnings per share of $2.12, short of Wall Street's $3.01 estimate. Revenue excluding traffic acquisition costs came in at $111.21 billion, narrowly missing expectations of $111.29 billion.
- Alphabet: Q3 Earnings Snapshot
Alphabet (GOOGL) reported third-quarter earnings of $26.47 billion, with net income of $2.12 per share, missing Wall Street expectations. The average estimate of 14 analysts surveyed by Zacks was $2.94 per share. Revenue for the period was $127.58 billion, and after subtracting Alphabet's advertising commissions it came to $111.21 billion, also below the $111.8 billion forecast by nine analysts surveyed by Zacks.
- CME Group (CME) Stock Sees Fair Value Lift As Analysts Back Record Volumes
A recent model update raised CME Group's fair value estimate from US$292 to US$316, feeding into price targets in the US$300 to US$360 range. Analysts tie these targets to record Q3 volumes, the current interest rate backdrop, and new contracts such as crypto and compute-related futures. JPMorgan, Morgan Stanley and Wells Fargo raised their targets into the US$300s, while BofA keeps an Underperform rating, lifts its target into the low US$200s and cites valuation and modeling updates rather than a change in fundamental thesis. Deutsche Bank moved to Hold with a US$270 target, saying the upside has narrowed after the stock's prior rally. The model's revenue growth assumption also shifted from 5.65% to 6.08%.
- ServiceNow launches Control Tower Alliance to help enterprises adopt AI safely at scale
ServiceNow (NYSE: NOW) has launched the Control Tower Alliance, a new ecosystem of AI, cloud infrastructure, security and governance companies working with it to help enterprises adopt AI safely at scale. Founding members include Anthropic, AWS, Cisco, HiddenLayer, Kong, NVIDIA, Okta, OpenAI, Stripe, WitnessAI and Zenity. The alliance offers curated, pretested solutions pre-integrated with the Super Intelligence Control Tower, a centralized platform to discover, secure, govern, observe and measure enterprise AI. Partners can build on the platform, deliver certified pre-integrated solutions, or sell jointly through ServiceNow's global channels. The alliance will coexist with the ServiceNow Store and Workflow Data Network Partner Passport programs.
Get the briefing on Telegram or Zalo
Join the Upside Telegram channel or Zalo group for the Vietnam stocks and gold briefing at 8:00 and 19:00 (Vietnam time) on trading days, plus a weekly wrap on Saturday morning.