Prominent Investor Dalio Warns that Resumption of Fed's QE Could Accelerate Bubble Formation, Heightening Inflation Risks

Ray Dalio, founder of the world's largest hedge fund, Bridgewater Associates, warned in a post on X on the 6th titled 'Stimulus to the Bubble' that the decision by the Federal Reserve to end quantitative tightening (QT) and resume quantitative easing (QE) could act as a 'stimulus that worsens the bubble' under the current economic conditions. While previous rounds of QE by the Fed served as a 'stimulus to recession' amid asset safety, economic weakening, low inflation rates, and liquidity issues, the current scenario is entirely opposite. Asset prices are trending higher in a high-price zone (S&P 500 earnings yield...)