Ray Dalio says Kevin Warsh shouldn't cut interest rates in a ‘stagflation’ era

ray dalio says the us economy is in a stagflationary period — persistent inflation plus slowing growth — and warned that kevin warsh, the likely next fed chair, should not cut rates. dalio called it a "stagflationary period" on cnbc's "money movers" monday, citing "more immediate inflation, farther from the target." warsh has a clear path to replace powell in mid-may. "you would not cut interest rates now," dalio said. "you will lose your credibility. the federal reserve would lose its credibility." he pointed out other countries aren't cutting either. traders agree — the cme fedwatch tool shows a 100% chance the fed holds rates steady at this week's meeting, with fed funds futures signaling no cuts for the rest of the year. dalio said the equity rebound makes sense given strong corporate earnings, despite the ongoing war with iran. he recommends a 5% to 15% allocation to gold as an "effective diversifier."