Billionaire investor Ray Dalio claims President Trump is pushing to weaken the US dollar to handle the country’s massive debt. He says this is a major point of conflict between Trump and Federal Reserve Chair Jerome Powell.
A Battle Over Money’s Value
Dalio, founder of Bridgewater Associates, explained on X (formerly Twitter) that when debt is high, a common solution is to lower interest rates and devalue the currency. This helps debtors (like the government) but hurts creditors. He believes Trump is pushing for this, while Powell is resisting.
Trump has repeatedly called for Powell’s removal, largely due to the Fed’s pause on interest rate cuts. Dalio predicts Trump will likely get his way eventually, even if Powell remains. Historically, he argues, currencies tend to be devalued in such situations.
A Weak Dollar in the Future?
Dalio doesn’t expect the dollar’s value to be defended until inflation becomes a serious problem – and maybe not even then. He points to the 1970s and early 1980s as a historical example. He concludes that betting on a weaker dollar and lower interest rates is a safe bet for the foreseeable future.
Disclaimer: This information is for general knowledge and shouldn’t be considered investment advice. Always do your own research before making any financial decisions.
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