Bridgewater Founder Says Chance of a Recession is This High Before Next Year’s Election

Ray Dalio, the founder of Bridgewater, has said that there is a 40% chance of a recession in the U.S. before the 2020 presidential election next year.

According to Dalio, the U.S. economy is taking a turn for the worse.

It was on Wednesday that the yield on the 10-year Treasury note had briefly broke under the 2-year rate.

Cutting interest rates may not be effective in stimulating economic activity, so economies may resort to weakening their currencies to boost growth, Dalio explains.

“Recessions are always inevitable, the only question is: ‘When?’” Dalio said to CNBC’s “Managing Asia” in Singapore.

“I think that in the next two years, let’s say prior to the next election, there’s probably a 40% chance of a recession,” he also said.

“So, I think we are entering an environment that, over the next three years, you will see more currency wars. And whether there are overt interventions or whether their monetary policies that produce that,” Dalio added.