The market’s heaviest hitters are sounding the alarm on US debt

  • Three market experts have cited concern that growing US debt will send interest rates up.
  • Ray Dalio and Bill Gross both pointed out a supply-demand imbalance that will keep fueling borrowing costs.
  • US debt supply will only grow, as a recession would expand the federal deficit, Jeffrey Gundlach added.

US debt is ballooning, and leading market experts are raising red flags with more red ink on the way and a potential recession looming.

The warnings come as federal deficits have exploded in recent years, sharply elevating the trajectory of US debt. The Treasury Department has already auctioned $1 trillion in bonds just within this quarter. Meanwhile, borrowing costs have soared in the last year and a half as the Federal Reserve embarked on an aggressive tightening campaign.

R&I- TP

RandyMarsh

Article URL : https://markets.businessinsider.com/news/bonds/us-debt-ray-dalio-bill-gross-jeffrey-gundlach-bond-market-2023-9