Gundlach Skeptical of 'Goldilocks' Economy, Foresees Recession

Jeffrey Gundlach, CEO of DoubleLine Capital, expressed skepticism towards the optimism of a “Goldilocks” economy—a scenario where conditions are just right for growth without triggering inflation. Speaking on CNBC’s “Closing Bell,” Gundlach voiced his concerns that such a perfect balance is unrealistic, especially after Federal Reserve Chair Jerome Powell’s recent remarks, which Gundlach interprets as dampening the hopes for this ideal economic state. Gundlach remains steadfast in his prediction of a looming recession, countering the more optimistic view that the Federal Reserve’s aggressive rate hikes over the past year haven’t severely impacted economic expansion.