Tags: Ray Dalio | Bridgewater | hedge fund | rates

Dalio Says Fed May Make 'Tiny' Rate Hike Before Resuming QE

Wednesday, 26 Aug 2015 02:50 PM

Ray Dalio, the billionaire founder of Bridgewater Associates, said he expects the U.S. Federal Reserve to resume quantitative easing even if it first raises benchmark rates by a fraction of a percent.

“We don’t consider a 25-50 basis point tightening to be a big tightening,” Dalio wrote in a LinkedIn post updated Tuesday. “While we might see a tiny tightening akin to what was experienced in 1936, we doubt that we will see anything much larger before we see a major easing via QE.”

Dalio was clarifying comments made in an investor letter posted earlier this week on LinkedIn. He said in the update that there will be “a big easing before a big tightening.”

World financial markets have been convulsed by concerns over weaker Chinese growth, just as the Fed debates its first rate increase since 2006. Federal Reserve Bank of New York President William C. Dudley said today that the market turmoil has weakened the case for a rate hike in September.

Bridgewater manages $169 billion in Westport, Connecticut.

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Ray Dalio, the billionaire founder of Bridgewater Associates, said he expects the U.S. Federal Reserve to resume quantitative easing even if it first raises benchmark rates by a fraction of a percent.
Ray Dalio, Bridgewater, hedge fund, rates
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2015-50-26
Wednesday, 26 Aug 2015 02:50 PM
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