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Gundlach Says Rising Rates and Deficits Like ‘Suicide Mission’

John Gittelsohn
Gundlach Says Rising Rates and Deficits Like ‘Suicide Mission’

The soaring U.S. budget deficit at a time interest rates are increasing may be setting the stage for fiscal trouble, according to Jeffrey Gundlach, chief investment officer of DoubleLine Capital. “Here we are doing something that almost seems like a suicide mission,” Gundlach said Tuesday in a webcast discussing his DoubleLine Total Return Bond Fund. The Federal Reserve is expected to raise its benchmark rate for the second time this year and signal plans for future hikes when it meets Wednesday.