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Gundlach Warns Rising Rates May Lead Fed to Yield-Curve Control

  • The 5- and 30-year curve is close to highest level since 2016
  • Stocks likely to fall from ‘lofty perch,’ money manager says

Jeffrey Gundlach

Photographer: Alex Flynn/Bloomberg
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Billionaire money manager Jeffrey Gundlach warned that a 1940s-era central bank policy may make a return if long-dated bond yields continue to rise.

Federal Reserve Chairman Jerome Powell may implement yield-curve control should rates on Treasury securities drive much higher, the DoubleLine Capital chief investment officer said in a webcast Tuesday. Economists have speculated that the central bank could introduce yield targets as soon as September.