Over the past year, a fierce debate has been going on in Wall Street offices and executive boardrooms across America. The world’s top investors, economists, and business leaders can’t decide if the resilient labor market and robust consumer spending will enable a “soft landing” for the economy—where inflation is tamed without a recession. Or if sky-high prices and rising interest rates mean a “mild” recession, a “garden variety” recession, or even something akin to a “variant of another Great Depression” is on the way.
But DoubleLine Capital founder and CEO Jeffrey Gundlach told Yahoo Finance Wednesday that the debate is pointless, the inflation outlook is “darkening,” and Americans need to prepare for an economic downturn no matter what.
