economybubble

Investor Ray Dalio warns that the Federal Reserve is set to end its balance sheet reduction (QT) and may start economic stimulus (QE) from December 1, 2025 to boost growth.

Dalio cautions that stimulating the economy when growth is normal, unemployment is low, and asset prices are soaring signals a late-cycle risk (~75-year cycle) — potentially more dangerous than opportunistic.

He also notes that the government’s huge debt and budget deficits mean QE might mostly fund public debt rather than help the private sector. The consequences: rising inflation, weaker currency, and traditionally safe assets like gold or Bitcoin may become the go-to safe havens.

💭 Takeaway: Investors should monitor U.S. bond yields, the dollar index, inflation, and Fed policy closely. For crypto, stimulus could provide short-term gains but also heightens bubble risk.
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