Jeffrey Gundlach Photographer: Andrew Harrer/Bloomberg

The soaring U.S. budget deficit at a time interest rates are increasing may be setting the stage for fiscal trouble, according to Jeffrey Gundlach, chief investment officer of DoubleLine Capital.

“Here we are doing something that almost seems like a suicide mission,” Gundlach said Tuesday in a webcast discussing his DoubleLine Total Return Bond Fund. “We are increasing the size of the deficit while we’re raising interest rates.”

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