Ray Dalio says the Fed faces a tough balancing act as the economy faces 'enormous amount of debt'

Published On Sep 18, 2024, 9:38 PM

Billionaire investor Ray Dalio shares insights on the U.S. Federal Reserve's current economic challenges, particularly focusing on the significant national debt which has increased during the pandemic. He emphasizes the delicate balance the Fed must maintain between high enough interest rates to benefit creditors, yet low enough to avoid burdening debtors. With the Fed recently making its first interest rate cut since early Covid-19, Dalio warns of increasing debt levels and expresses concern over potential future economic instability. He predicts a trend towards monetizing debt similar to Japan's, which has led to a depreciation of currency and bond values.