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Dalio Says U.S. Two Years From Downturn

Bloomberg logo Bloomberg 12/09/2018 Katia Porzecanski

a man wearing a suit and tie: Ray Dalio © Bloomberg Ray Dalio (Bloomberg) -- The U.S. is probably two years away from its next downturn, when the impact of the U.S.’s current tax cut-driven fiscal stimulus begins to fade, billionaire hedge fund manager Ray Dalio said.

The next recession will be similar to the one in the late 1930’s, and will revolve around pension, healthcare and other unfunded obligations, the founder of Bridgewater Associates said in an interview with Bloomberg Television Wednesday.

The dollar will weaken as the Federal Reserve monetizes the deficit, with as much as a 30 percent depreciation of the dollar. The effectiveness of monetary policy in reversing it will be limited, he said.

--With assistance from Erik Schatzker.

To contact the reporter on this story: Katia Porzecanski in New York at

To contact the editors responsible for this story: Margaret Collins at, Alan Mirabella

©2018 Bloomberg L.P.

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