Bridgewater's Dalio: Fed's next move toward QE, not tightening - Prediction - Accurate

Bridgewater's Dalio: Fed's next move toward QE, not tightening: "Amid the global market turmoil, the Federal Reserve is more likely to ease than tighten interest rates again, Ray Dalio, founder of the world's largest hedge fund, said Wednesday.

"I think a move to a quantitative easing would bolster psychology," he told CNBC's "Squawk Box" at the World Economic Forum in Davos, Switzerland.

The Fed hiked rates in December, the first such move in more than nine years.

At the time, central bankers telegraphed four more possible rate increases in 2016. But with the horrible start for the markets in the new year, many investors are questioning the wisdom of such an aggressive path higher.

"This will be a negative for the economy, this market movement. The Fed should remain flexible. It shouldn't be so wedded to a path," Dalio said. "We're going to have a lower level of growth in six months from now ... about 1.5 percent.""



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