Gundlach: bond market signals Fed must act on inflation

Investor Jeffrey Gundlach said divergent moves across the US Treasury yield curve reflect investor skepticism that the Federal Reserve will ultimately follow through on controlling inflation. He argued the bond market is sending a clear signal that the Fed needs to start acting, a view he linked to expectations around potential Fed chair Kevin Warsh. The divergence between the short and long ends of the curve, he said, shows a lack of market confidence in the Fed's resolve.