07:04 PM EDT, 07/29/2026 (MT Newswires) -- DoubleLine Capital CEO Jeffrey Gundlach said the Treasury market is signaling that the Federal Reserve will need to raise interest rates, not just talk tough, if policymakers are serious about hitting their 2% inflation target, CNBC reported Wednesday.

"If you really want to get to 2%, I think you have to raise interest rates," Gundlach said on CNBC's 'Closing Bell' on Wednesday, adding that reaching the target could take longer than the next couple of years.

Gundlach said diverging moves across the Treasury curve reflect skepticism that the Fed will follow through, with the two-year yield falling while the 30-year yield climbed to 5.213%, its highest since 2007, according to the report.

Fed Chairman Kevin Warsh said the central bank remains committed to its 2% goal and will act when necessary, according to the report.