Bridgewater Associates founder Ray Dalio warned on Wednesday that the United States faces a “very severe” supply-demand problem that could lead to “shocking developments” in the near future.
What Happened: “The first thing is the debt issue,” Dalio said at the CONVERGE LIVE event in Singapore, emphasizing that the federal government will need to sell more debt than global markets can absorb, reported CNBC.
The billionaire investor stressed the urgency of reducing the U.S. deficit from its projected 7.2% of GDP to approximately 3% — a substantial adjustment that would require significant fiscal changes.
“That’s a big deal. You are going to see shocking developments in terms of how that’s going to be dealt with,” Dalio warned.
His comments come amid recent market volatility triggered by trade policy uncertainty, adding to Wall Street’s concerns about global economic stability.
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