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- Hedge fund billionaire Ray Dalio argues the Fed has raised rates to a point where they’re hurting asset prices.
- The central bank needs to start looking at monetary policy’s impact on asset prices before economic conditions, Dalio says.
- Dalio also laughs off the notion that the Fed needs to raise rates so it would have room to make cuts if the economy were to take a major downturn.
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- “From a 50,000 feet viewpoint, we’re probably in a global debt bubble,” says Paul Tudor Jones, who is famous for making big macro calls. “Global debt to GDP is at an all-time high.”
- The investor added that some “scary” moments may come in the corporate bond market.
- Jones also said the Trump administration’s corporate tax cut from late last year could hurt investors down the road as the Federal Reserve keeps raising rates.
Warren: Fed Is Making the Exact Same Mistakes Now That Led to the 2008 Crisis
- Sen. Elizabeth Warren charged Thursday that a buildup in leveraged loans is threatening the economy in the way subprime loans did leading up to the financial crisis.
- She criticized the Federal Reserve for “dropping the ball” then and said the same situation is unfolding now.
- A potential presidential candidate, Warren’s comments were directed at Fed Vice Chair Randal Quarles during a hearing Thursday.