DoubleLine Capital CEO Jeffrey Gundlach mentioned Wednesday he expects just one price reduce for 2025 — two reductions at most — because the Federal Reserve patiently awaits incoming information to evaluate the state of the labor market and inflation.

“Most two cuts this yr. And I imply most, I am not predicting two cuts. I simply assume that is essentially the most you’ll be able to presumably take into consideration,” Gundlach mentioned on CNBC’s “Closing Bell.” “At the moment second, in the event you had made me decide a quantity, I might say now one reduce could be the bottom case and most two.”

The central financial institution kept interest rates unchanged Wednesday after three consecutive cuts to finish 2024. Fed Chair Jerome Powell emphasised that the central financial institution is in no hurry to regulate its coverage stance, significantly because the economic system stays sturdy.

“It may be a sluggish course of to get to a hurdle to chop charges once more. … I do not assume you are going to see a reduce on the subsequent Fed assembly,” Gundlach mentioned. “He is clearly targeted on the soundness within the unemployment price proper now when it comes to not feeling a necessity to chop charges.”

The notable mounted earnings investor thinks long-duration Treasury yields have extra room to rise. He famous that the benchmark 10-year rate has elevated about 85 foundation factors for the reason that Fed reduce charges for the primary time final yr.

“I feel that charges haven’t peaked on the lengthy finish,” he mentioned. “I feel charges could have one other transfer up on the lengthy finish.”

Gundlach cautioned in opposition to proudly owning high-risk belongings proper now due to his view on long-term rates of interest and his remark that valuations are excessive.