Will the US Economy 'hit a wall'?

9.8.23 - Will the US Economy 'hit a wall'?

Gold last traded at $1,919 an ounce. Silver at $22.91 an ounce.

US economy will 'hit a wall' by the spring - and inflation could spike again, warns 'bond king' Jeffrey Gundlach - Business Insider

By Theron Mohamed

, and inflation could surge again, Jeffrey Gundlach has warned.

"I think the economy is going to hit a wall in the next six or eight months or so, and there's going to be a real shutdown in consumer activity due to all of these interest payments that have to be made," he told Fox Business Thursday.

The billionaire investor and DoubleLine Capital CEO noted that many Americans managed to put money away during the pandemic.

They took advantage of government-aid programs that included mailing stimulus checks to households, and offering emergency grants and loan forgiveness to businesses. All the extra cash boosted the economy and asset prices, stoking historic inflation last year.

However, consumers have virtually exhausted those savings , Gundlach said. They now face a "dangerous cocktail" of inflated living costs, steeper rents, larger interest payments on their credit cards, the resumption of student-loan repayments, and taxes coming due, he continued.