The U.S. is probably two years away from its next downturn, when the impact of the U.S.’s current tax cut-driven fiscal stimulus begins to fade, billionaire hedge fund manager Ray Dalio said.
The next recession will be similar to the one in the late 1930’s, and will revolve around pension, healthcare and other unfunded obligations, the founder of Bridgewater Associates said in an interview with Bloomberg Television Wednesday.
The dollar will weaken as the Federal Reserve monetizes the deficit, with as much as a 30 percent depreciation of the dollar. The effectiveness of monetary policy in reversing it will be limited, he said.
This article was provided by Bloomberg News.