Billionaire investor Ray Dalio expressed concern over the US economy, warning of “something worse than a recession” under President Donald Trump’s trade policies. In an interview with NBC’s Meet the Press, Dalio stated that he believes the country is at a critical juncture and that failure to address the issues could lead to severe economic consequences.
Dalio cited historical comparisons to the 1930s and noted that similar factors, such as tariffs and debt, can be highly disruptive. He emphasized the importance of managing trade deficits and reducing the budget deficit to avoid supply and demand problems for debt.
The billionaire investor also called on congressional members to take action, urging them to reduce the budget deficit to 3% of GDP. However, Dalio acknowledged that the effectiveness of Trump’s policies depends on how they are implemented.
Despite attempts to freeze tariffs at 10%, financial experts warn that the damage has already been done, particularly in regards to rapid de-dollarization.
Source: https://www.theguardian.com/business/2025/apr/13/ray-dalio-trump-tariffs-recession