Billionaire Ray Dalio Warns Trump’s Actions Could Push U.S. Toward Autocracy
Billionaire businessman Ray Dalio has warned about America’s political and economic future under President Donald Trump, comparing it to history’s worst eras.
This week, Bridgewater Associates founder and Wall Street titan Ray Dalio expressed significant anxiety about the U.S.’s direction in an interview. He believes widening divisions in wealth, morals, and political trust are encouraging more radical policies, producing an atmosphere reminiscent of the 1930s and 1940s, when authoritarian leaders rose to power globally.
He noted Trump’s recent purchases, including a 10% share in Intel. Trump’s team lauded the agreement as momentous, but Dalio called it a symptom of “autocratic-style leadership” seeking more control over the economy and financial system. The wealthy investor said most individuals stay quiet in times like these because they fear reprisal for criticizing leadership.
Trump’s Fed pressure also angered Dalio. Trump fired Fed governor Lisa Cook, who has subsequently sued to preserve her job, in a contentious move. Trump alleged mortgage fraud, but no charges have been brought. Dalio said that such moves undercut Fed independence, which might harm America’s financial stability and worldwide dollar trust.
President Trump’s spats with Fed Chair Jerome Powell have fueled the fire. Powell’s refusal to cut rates despite Trump’s demands has caused tension. Dalio warned that jeopardizing the central bank’s independence might destabilize the monetary system, making investors wary of dollar assets. He said the Fed has to either let rates increase and risk a debt default crisis or print more money and buy debt the markets reject.
In the long run, Dalio worried about America’s growing debt. He claimed increasing deficits for decades have made the economy vulnerable. While acknowledging that both Republican and Democratic administrations share blame, Dalio warned that Trump’s proposed budget might cause a “debt-induced heart attack” in the coming years. Without substantial adjustments, he expected ramifications in three years, give or take.
The billionaire has long criticized Trump. Dalio has likened Trump’s leadership style to far-right regimes and warned that strong tariffs could plunge the US into recession. As Trump strengthens his political grip and prepares for the next phase of his presidency, his latest pronouncements are more startling.
Dalio’s warning adds to economists, politicians, and global investors’ concerns that unfettered political power and budgetary mismanagement could lead to a perilous US turning point. While many remain mute, Dalio’s bold views show deep worry about America’s political and economic institutions handling the pressure.
Sources:
Financial Times
Bloomberg
Reuters
