From Yahoo Finance: 2025-06-12 15:03:00

Legendary fund manager sends blunt 3-word message on economy, sparking debate on US economy’s future. Tariffs, inflation, and uncertainty loom, impacting stocks, bonds, and jobs. Billionaire hedge fund manager Jeffrey Gundlach warns of potential economic troubles, advising investors to heed his experienced insight.

Fiscal and monetary stimulus saved US from Covid depression but caused inflation. Fed’s hawkish rate hikes lowered inflation but raised unemployment. Chair Powell cut rates to boost employment, but inflation may resurge. President Trump’s tariffs exacerbate inflation worries, posing threats to the economy and consumer confidence.

Gundlach warns of rising Treasury yields, potential 6% increase impacting retirees, corporations, and households. He predicts inflation bottomed out, hinting at tighter budgets. A reckoning looms, as economic uncertainty grows. 10-year Treasury note and 30-year Treasury bond yields at 4.39% and 4.88%, impacting mortgage rates and housing market.

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