Gundlach predicts Neel Kashkari to be next Fed chair

Jeffrey Gundlach, the money manager who predicted the presidential election of Donald Trump when few saw it coming, has a new surprise call: Neel Kashkari will be the next chairman of the Federal Reserve.

Gundlach, speaking Tuesday at a Vanity Fair summit in Los Angeles, said Kashkari, president of the Federal Reserve Bank of Minneapolis, is a strong advocate of easy money.

Kashkari wrote in an essay on Monday that the Fed shouldn't raise interest rates again until inflation hits 2 per cent or there's a large drop in unemployment.

Kashkari hasn't been floated as a potential candidate for the job. Gundlach, the head of DoubleLine Capital, cited Cohn's recent role as president of Goldman Sachs Group as a reason.