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UPDATE 1-Bridgewater's Dalio says monetary policy only potential U.S. problem - CNBC
October 1, 2014 / 1:57 PM / 3 years ago

UPDATE 1-Bridgewater's Dalio says monetary policy only potential U.S. problem - CNBC

(Adds additional Dalio comments, details on Fed policy)

NEW YORK, Oct 1 (Reuters) - Ray Dalio, president and founder of giant hedge fund firm Bridgewater Associates LP, said Wednesday that overly tight monetary policy was the only potential problem for the U.S. economy.

“I see no real reason for a problem in the United States now other than too tight a monetary policy,” Dalio told television network CNBC. He said he did not see monetary policy becoming too tight, however.

Dalio cited the strength of U.S. companies and said there was “plenty of liquidity in the system.”

He said he supported Federal Reserve Chair Janet Yellen’s stance on monetary policy. The Fed renewed its pledge to keep interest rates near zero for a “considerable time” on Sept. 17, but also indicated it could raise borrowing costs faster than expected when it starts moving.

Dalio also cited the importance of inflation as a guidepost for monetary policy. A number of top Fed officials are watching inflation before embarking on a gradual course of rate increases.

“If I was running monetary policy, I would wait to see for the whites of the eyes of inflation,” he said.

Bridgewater oversees roughly $160 billion in assets.

Reporting by Sam Forgione, Editing by Franklin Paul

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