(Bloomberg) -- Billionaire investor Ray Dalio doesn’t anticipate the Federal Reserve making “significant cuts in rates” after policymakers slashed the federal funds rate by a half-percentage point.
“The economy right now is in relatively good balance,” the Bridgewater Associates founder said Tuesday at the Greenwich Economic Forum.
The Fed cut rates last month for the first time in four years, but a strong jobs report for September is giving policymakers room to move at a slower pace going forward.
In a wide-ranging interview, Dalio also commented on the policies of presidential candidates Donald Trump and Kamala Harris and raised concerns about the bond market.
“We have an unusual supply-demand situation” with the Treasury bond market, Dalio said.
Treasuries constitute a high percentage of institutional investors’ portfolios and feel overweighted, he said. Geopolitical uncertainty is also an issue in the Treasury market, according to Dalio.
“Foreign countries worry about holding bonds” because they could be sanctioned, he said.
The investor was bullish on Trump’s economic policies, calling his lower taxes on corporations “more classically capitalistic.”
“He makes a very good point on the ability to raise tariffs,” Dalio said, adding that he’d calculated that Trump’s tariff proposals would raise roughly $800 billion a year.
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