In an interview with CNBC on Tuesday, billionaire investor Ray Dalio (Trades, Portfolio), who leads hedge fund Bridgewater Associates, said he sees a “significant risk” for a U.S. recession in 2020.
Dalio, who is currently attending the World Economic Forum in Davos, Switzerland, also expects an economic slowdown in other parts of the world, including Europe, China and Japan. In a panel discussion at the event earlier in the day, he said he is most worried about “the next downturn in the economy” as well as “greater political and social antagonism” around the globe.
He also said bond yields are indicating the Federal Reserve should cease to continue increasing interest rates.
"I think there is the possibility that you extend the equilibrium in a certain way where you have an easier monetary policy ... and you grow in a fairly slower way and that you don't have a classic recession for a while," Dalio said.
The Fed, which implemented its fourth hike of 2018 in December, has two more rate increases planned for 2019, but, as a result of continued muted inflation, Fed Chairman Jerome Powell said earlier this month that the central bank will be patient.
See the full interview below.
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