Legendary investor Ray Dalio recently issued a stark warning: the Fed is lowering interest rates despite a strong economy and booming employment, which is problematic.
What is the normal logic? Interest rates should be cut to stimulate the economy when it is performing poorly. But now, with the unemployment rate in the U.S. at a historical low and the stock market hitting new highs, the Fed is still injecting liquidity, which is like fueling a car that is already overloaded—an accident is bound to happen.
Dalio calls this a "dangerous combination": high government fiscal deficits + central ban
What is the normal logic? Interest rates should be cut to stimulate the economy when it is performing poorly. But now, with the unemployment rate in the U.S. at a historical low and the stock market hitting new highs, the Fed is still injecting liquidity, which is like fueling a car that is already overloaded—an accident is bound to happen.
Dalio calls this a "dangerous combination": high government fiscal deficits + central ban
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