Ray Dalio warns of potential Japan-like policies and challenges for the US Federal Reserve due to rising national debt and interest rate management.

Ray Dalio, founder of Bridgewater Associates, cautions that the U.S. Federal Reserve faces significant challenges in managing interest rates amid soaring national debt exceeding $35 trillion. He emphasizes the need for a balance between creditor and debtor interests, especially following the recent interest rate cut. Dalio predicts a potential shift to Japan-like policies of low rates, which could depreciate debt value and warns against reliance on debt assets in investment portfolios.

September 19, 2024
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