Ray Dalio Says Kevin Warsh Shouldn’t Cut Interest Rates in a ‘Stagflation’ Era

Ray Dalio warns that the U.S. is already in a stagflationary environment. Where inflation stays high while growth slows, making monetary policy especially tricky. Kevin Warsh is being cautioned not to cut interest rates because doing so could worsen inflation and damage the Federal Reserve’s credibility.

Dalio argues that in this kind of economy, central banks typically need to prioritize controlling inflation rather than stimulating growth, even if that risks weaker employment or output.