If Donald Trump returns to the White House, it would worsen budget deficits and the bond market would suffer more than under another Joe Biden term, longtime bond investor Bill Gross said Sunday.
In an interview with the Financial Times, he acknowledged that Biden has also overseen an explosion in U.S. debt with deficits soaring to 8.8% of GDP last year from 4.1% in 2022. Still, the so-called Bond King, who cofounded PIMCO, sees more trouble from the former president than the current one.
“Trump is the more bearish of the candidates simply because his programs advocate continued tax cuts and more expensive things,” Gross told the FT, later adding “Trump’s election would be more disruptive.”
That comes as Trump has vowed to make his 2017 tax cuts permanent, while Biden has said he would let the cuts expire but wouldn’t let taxes go up for Americans who earn less than $400,000 a year.
A spokesman for…
