The natural instinct of policymakers is to use monetary policy to address problems ('if things aren't exactly like I would like...use monetary policy'), and while this often works in the short term (things go up, people are happy), there is a cost: artificial lowering of interest rates creates imbalance by making debt attractive while making asset holding unattractive.

causalpending

Speaker

Ray Dalio

Evidence Quote

when you artificially lower the interest rate so that it is not attractive...to hold as an asset and it's very attractive to borrow and buy things, that creates an imbalance

Source

Ray Dalio on Gold Prices, Fed Interest Rates, Trump's Trade PolicyBloomberg Television
Created: 8/11/2026, 7:25:59 AM

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