Raydario, a billionaire investor and founder of Hedge Fund Bridgewater Associates, said on Sunday that the US was “very close to a recession.”
In an interview with NBC News on “Meet the Press,” Dalio raised concerns about the confluence of various economic and political factors that he said could send the US economy to “something worse than a recession.”
“I think we’re at a decision point right now, and we’re very close to a recession, and if this isn’t handled well, I’m worried that it’s worse than a recession,” Dario said when asked whether the US “is likely to immerse itself in a recession due to President Trump’s tariffs.”
Dario said he was particularly concerned about US debt, urging lawmakers to pledge to reduce their fiscal deficit to 3%.
“If they don’t, we have these other issues, as well as the supply and demand issues of debt, and the outcome will be worse than a normal recession,” he added.
Coupled with Trump’s tariffs, “a deep change in our domestic order” and “a deep change in the world order,” debt could lead to “very, very destructive” outcomes, Dario said.
“That era is very similar to the 1930s. I studied history, and this happens over and over again,” he said. “How it is handled can produce something much worse than the recession, or it could be handled well.”
Earlier this month, the White House announced a 10% baseline tariff on foreign imports and a more steeper “mutual” tariff on dozens of other countries, including many major trading partners. The president later announced a 90-day suspension on increased tariffs on trading partners, during which time he reverted foreign tariff rates to 10%.
However, the change did not apply to China. Trump ratcheted mutual tariffs in China to 125% plus 20% tax, resulting in a proportional response from Beijing. It intensified the fears of a massive trade war between the two biggest economies of the world. On Friday, the White House announced it would exempt electronic devices from “mutual” tariffs imposed on countries including China.
https://thehill.com/business/economy/5246848-bridgewater-founder-recession/
