Saturday 17 September 2022 11:23 PM Billionaire economist predicts Fed hike in interest rates to 4.5% will crater ... trends now
A billionaire economist has warned that the coming Federal Reserve interest rate hikes will lead to the stock market plummeting by 20 percent.
Ray Dalio, founder of the Bridgewater Associates investment company, joined predictions that the central bank would increase interest rates by another historical 75-percentage points, and that the year would end with interest rates at 4.5 percent.
It would be nearly double from the current range of 2.25 and 2.5 percent, which Dalio wrote would plunge stocks by a fifth as Wall Street's three major indexes have already seen a more than 9 percent drop this past month.
Dalio added that the negative forecast would impact all levels of the economy, including American's 401ks, which will see a significant drop along with the stock market.
'This will bring private sector credit growth down, which will bring private sector spending and, hence, the economy down with it,' he wrote.
Ray Dalio (above), billionaire founder of the Bridgewater Associates investment company, warned that the predicted federal interest rate hikes would send stocks falling by 20 percent
Dalio and other economists believe the central bank will hike interest rates by another consecutive 0.75 percent in order to reach a 4.5 percent rate by 2023
The hikes have caused shocks in the stock market, with the Dow Jones Industrial average falling by 9.34 percent this past month alone
The Federal Reserve has been ramping up interest rates this year after keeping them near zero during the pandemic in order to
