DoubleLine Capital CEO Jeffrey Gundlach said Thursday that interest rates could shoot higher if Republicans end up controlling the House, securing a governing trifecta that gives President-elect Donald Trump free rein to spend as he pleases.
"If the House goes to Republicans, there's going to be a lot of debt, there's going to be higher interest rates at the long end, and it'll be interesting to see how the Fed reacts to that," Gundlach said on CNBC's "Closing Bell."
The race to control the House is undecided as of Thursday after Republicans clinched their new Senate majority.
"So it looks to me that there will be some pressure on interest rates, and particularly at the long end.
Still, Gundlach, who had predicted a recession in the U.S., said the Trump presidency makes such an economic downturn less likely.
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