Interest rates have bottomed due to surging government spending, Gundlach says

That’s Jeffrey Gundlach, the DoubleLine CEO speaking to CNBC, on how the next cutting cycle from the Fed may lead to a different experience for the broader economy.

Gundlach is not alone in warning about government spending, which Fed Chair Jerome Powell called unsustainable. The Congressional Budget Office forecasts federal budget deficits will total $20 trillion over the 2025–2034 period, and it’s unusual to see big deficit-to-GDP ratios, such as 6% last year, when the economy is expanding.

Gundlach…