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Dalio warns stagflation, urges Fed to keep rates.

4/28/2026

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Summary

Dalio Urges Fed

Investor Ray Dalio warned that stagflation has set in and that cutting rates would erode confidence, urging Federal Reserve (Fed) chair Kevin Warsh not to cut rates.
Dalio advised allocating 5%-15% to gold and said the equity rebound is justified by earnings despite Iran war.
Traders price a 100% chance Fed will hold rates at this week’s meeting, putting Warsh on track to succeed Fed Chair Jerome Powell in May.

Summary

Dalio Warns Fed

Ray Dalio, founder of Bridgewater Associates, gave a live CNBC interview from the New York Stock Exchange trading floor on April 27, 2026.
He warned that a premature interest-rate cut would erode confidence in the Federal Reserve and make future policy moves harder.
Dalio noted his perspective reaches a global investor audience.
The NYSE setting underscored the symbolic link between his warnings and the heart of U.S. financial markets.

Summary

Warsh Faces Confirmation

Kevin Warsh, former Federal Reserve (Fed) director (2006-2011), faces a mid-May confirmation that will test if he stays hawkish or yields to President Donald Trump.
Warsh cited Covid price hikes of 25-35% as proof the Fed missed its target.
His disclosures show a portfolio over $100 million, including crypto stakes, drawing Democratic scrutiny.
President Donald Trump said in December Warsh believes rates should be lower, indicating alignment.

History

Historical Context

In July 1979 President Carter named Paul Volcker Fed chair, and his aggressive money-supply tightening ended the early-1980s stagflation, pulling inflation down from double-digit levels. After the Fed’s quantitative easing era, a June 2022-July 2023 rate-hike cycle raised the benchmark by 5.25 percentage points, with CPI peaking at 9.1 % in July 2022; Bridgewater founder Ray Dalio now warns that premature cuts could repeat Volcker’s shock.

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Dalio Urges Fed

Investor Ray Dalio warned that stagflation has set in and that cutting rates would erode confidence, urging Federal Reserve (Fed) chair Kevin Warsh not to cut rates.
Dalio advised allocating 5%-15% to gold and said the equity rebound is justified by earnings despite Iran war.
Traders price a 100% chance Fed will hold rates at this week’s meeting, putting Warsh on track to succeed Fed Chair Jerome Powell in May.

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