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Art Cashin: Stagflation is ‘worst of all worlds’ scenario under Trump

Donald Trump's economic policy overhaul and massive spending could result in stagflation, throwing a wrench into his pro-growth plans, UBS' Art Cashin told CNBC on Monday.

"Some people are projecting the idea of the worst of all worlds, stagflation, that you begin to get the inflation they were looking for but the stimulus doesn't really work because of the high level of indebtedness that we have," Cashin said on "Squawk on the Street."

Cashin, director of UBS floor operations at the New York Stock Exchange, said his most pressing concerns besides stagflation are potential rises in yields and interest rates, which could have adverse effects on bonds and the national deficit.

"It's a little too early to say, but there's an outside chance that it might be our old friends the bond vigilantes who are back, saying, 'OK, you're going to do tax cuts and you're going to do stimulus spending, what is that going to do to the deficit and where are we going to go from there?'" Cashin said.