Bond King Jeffrey Gundlach warns over US economy as Americans’ debt piles up: ‘Concerning’

As Americans’ debt mounts, recession fears rise again and the Federal Reserve grapples with pressure to cut interest rates, bond magnate Jeffrey Gundlach offers a grim view of the economy’s obstacles.

“I think the data that has come out over the past week is very worrying,” the CEO and founder of DoubleLine Capital said about the country’s economy on “Mornings with Maria.”

“A month ago, if you subdivided the economy into six or seven major sectors, all of them had positive growth. But suddenly, this year, the same numbers had more negatives than positives; There are fewer positives in the sector,”’ Gundlach explained.

High inflation is changing how Americans retire

The Labor Department said the Consumer Price Index (CPI), a broad measure of the prices of daily necessities such as gasoline, food and rent, rose by 0.3.% From last month to April. Economists had expected a 0.4% increase from the previous month. Prices rose 3.4% year-on-year, slowing from 3.5% in March.

Unfortunately, Americans are still feeling the effects of high prices and turning to credit cards to offset the burden.

Gundlach emphasized that credit card bills are starting to “mount up.”

Americans are carrying record amounts of household debt

I think the lifestyle adjustments allowed by printing money have allowed people to live a lifestyle where they can’t accept checks from the government but can put money on credit cards. ” he continued.

The average debt per borrower reached $6,218 at the end of the first quarter, an 8.5% increase from a year ago, according to new data released by TransUnion on Thursday. Consumers carry $1.2 trillion in credit card debt.

Gundlach predicts a recession is inevitable, but told host Maria Bartiromo that it’s “hard to say” exactly when it will hit the U.S.

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FOX Business’ Megan Henney contributed to this report.