“The Fed has to keep interest rates high enough to satisfy the creditors that they are going to get a real return without having them so high that the debtors have a problem,” Dalio told Bloomberg Television’s Haslinda Amin on the sidelines of the Milken Institute Asia Summit 2024 in Singapore on Wednesday.
The size of the US Federal Reserve’s (US Fed) interest rate cut this week won’t be a game changer for global investors, though risks from China’s slowdown continue to weigh on their minds, according to participants at a regional forum.
Bridgewater Associates founder Ray Dalio said what the US Fed will do this week “doesn’t make a difference” over the longer term as policymakers will ultimately need to keep real interest rates low to allow servicing of mounting debts.
