Dalio Warns: Powell Shouldn’t Cut Rates in ‘Stagflation,’ Advises 5%-15% Gold Allocation

BlockBeats News, April 28th - Billionaire investor Ray Dalio warned that the U.S. economy has entered a period of stagflation. He also stated that if the potential Federal Reserve Chair nominee Kevin Warsh chooses to cut interest rates, it would be a mistake.

Dalio mentioned that Warsh is now clearly expected to take over as the next Federal Reserve Chair in mid-May. If Warsh decides to cut interest rates at that time, it could potentially undermine market confidence in the Fed at a critical moment.

Dalio pointed out that despite the ongoing tensions with Iran, the significant rebound in the U.S. stock market is reasonable due to strong corporate earnings. However, he still advised allocating 5% to 15% of a portfolio to gold as an "effective diversification tool."