Dalio sees quarter-point Fed cut as ‘right thing’ for creditors
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Ray Dalio, founder of Bridgewater Associates, suggests a quarter-point interest rate cut by the Federal Reserve is appropriate for creditors, balancing their need for real returns against the burden on debtors. He stated this during an interview on September 18, 2024, at the Milken Institute Asia Summit in Singapore. Dalio believes that while a 25 basis point cut is warranted, a 50 basis point cut may be necessary due to worsening mortgage conditions. He emphasized that the Fed's decision this week is not critical for the long term, as real interest rates must remain low to manage rising debts. Jamie Dimon, CEO of JPMorgan Chase, echoed similar sentiments, stating that the rate cut's impact will be minor in the broader economic context.

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