- Hedge fund titan Ray Dalio believes it is too late for central banks to reverse a global slowdown.
- Dalio is warning that current conditions remind him of the Depression-era environment.
- He says the world is currently entering a “great sag” as the natural cycle of growth ends.
Hedge fund owner Ray Dalio said the global business cycle is in a “great sag” and the world’s economy holds at least two parallels to the 1930s.
Speaking a CNBC-moderated panel at the IMF and World Bank annual meetings in Washington, D.C. on Thursday, Dalio said it was now too late for central banks to make much difference as economies enter a natural downturn.
“This cycle is fading, we are now in the world in what I would call a ‘great sag’,” said Dalio, adding that monetary policy, and especially interest rate reductions, were unlikely to offer much stimulus.