Photo: Business Insider
Bond god Jeff Gundlach spoke at a conference in Maryland today, reports Bloomberg.Gundlach has long expressed concerns over the government’s mountain of debt.
But one thing that’s kept the debt problem from crushing the economy is low rates.
As such, Gundlach doesn’t expect the Red to raise rates anytime soon.
“With all of this debt building up, one thing that’s been saving us is the interest rate on the debt has been collapsing,” Gundlach said.
Raising rates would be “like shooting yourself in the head,” Gundlach said.
This is not a new position for Gundlach. In a recent presentation, Gundlach said we’d have to see a major increase in inflation before the Fed would start hiking rates.