Bridgewater Criticizes Fed's Ambiguous Communication as Split on Rate Cuts Fuels Market Volatility
- Bridgewater and Yellen praised Fed's 25-basis-point rate cut but criticized unclear communication, highlighting market expectations for stronger easing. - Fed's 10-2 decision to cut rates to 3.75%-4.00% revealed internal divisions, with dissenters advocating larger cuts or rate stability amid labor and inflation concerns. - Dalio warned of U.S. economic imbalances, noting 1% elite dominate tech innovation while 60% face low productivity, risking social stability. - Markets reacted mixed: Bitcoin ETFs saw
Bridgewater Associates, recognized as the globe’s largest hedge fund, welcomed the U.S. Federal Reserve’s 25 basis point interest rate reduction but remained critical of how the central bank has communicated its policies. Treasury Secretary Janet Yellen shared comparable views, highlighting that although the rate cut is supportive of economic expansion, the Fed’s reserved messaging does not match market hopes for a more assertive easing approach, according to a
This latest move by the Fed highlights increasing internal disagreements, especially as it tries to manage a slowing job market and inflation that continues to exceed its 2% goal. Chair Jerome Powell stated that the rate cut is intended to support job growth, but also made it clear that additional cuts in December are “by no means guaranteed,”
Ray Dalio, Bridgewater’s founder, has consistently cautioned about deep-rooted imbalances in the U.S. economy, arguing that economic gains are increasingly limited to a small, highly efficient segment. Speaking at the Fortune Global Forum, Dalio observed that about 1% of Americans—roughly three million people—lead advancements in AI and technology, while 60% of the population faces challenges with literacy and stagnant productivity, according to
The Fed’s rate reduction has produced varied reactions across financial markets.
Bridgewater’s prudent approach reflects widespread unease about the Fed’s messaging. While the 25-basis-point cut is viewed as a move toward monetary easing, the central bank’s hesitation to commit to further cuts has left investors uncertain. Analysts from UBS and Wolfe Research observed that Powell’s focus on a data-driven policy has blurred expectations, making it harder for markets to position themselves, as noted by Investing.com. This ambiguity is further intensified by the ongoing federal government shutdown, which has postponed key economic data releases and added to the Fed’s uncertain outlook, according to Hürriyet Daily News.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
Bitcoin Latest Update: TGA’s $1 Trillion Liquidity Drain Drives Bitcoin Down to Lowest Point in Six Months
- U.S. government shutdown swells Treasury General Account (TGA) to $1 trillion, draining liquidity and pushing Bitcoin down 19% from October highs. - Fed injects $30B via repo operations as banks face cash shortages, signaling active liquidity management amid structural tightening. - Analysts predict Bitcoin "final drop" correction phase, with potential rally expected post-shutdown as fiscal spending resumes and rate cuts loom. - Pessimists warn of 2018-style crisis if shutdown extends, while optimists fo
Hyperliquid News Today: JELLYJELLY's Unexpected Rise Amid Crypto Downturn Sparks Manipulation Controversy
- JELLYJELLY, a Solana-based meme coin, surged to $0.50 and $500M market cap amid broader crypto market declines, defying Bitcoin and Ethereum price drops. - Blockchain analytics firm Bubblemaps flagged manipulative tactics, citing 20% liquidity drain from inactive wallets and a 600% price spike linked to coordinated trading. - Leverage platforms like HyperLiquid and Aster offer up to 40x BTC contracts for JELLYJELLY, amplifying risks as its value relies on retail frenzy rather than fundamentals. - Regulat
TAO's 23% Jump Signals Rising Institutional Interest in AI Staking
- Bittensor's TAO surged 23% in Nov 2025 after Safello/DDA launched the staked TAO ETP (STAO) on SIX Swiss Exchange, boosting institutional adoption. - AI-driven crypto gains momentum as Bitcoin miners raise $11B for data centers, while DeepSnitch AI ($DSNT) emerges as a presale disruptor with $486K raised. - Coinbase reported $432.6M Q3 profit with $300B+ custody assets, reflecting crypto finance maturation, while Strategy's 5.7% share jump followed $2.8B net income. - Analysts forecast 115% TAO price gro
DeFi Experiences a Wave of Innovation Amid November's Market Fluctuations with $312M Worth of Tokens Released
- DeFi innovation accelerates with Makina's next-gen execution engine targeting scalability gaps and smart contract efficiency. - Mutuum Finance (MUTM) raises $18.4M in presale, with 85% subscription in Phase 6 and 250% token price growth since launch. - Chainlink partners with Validation Cloud to enhance institutional DeFi infrastructure through cross-chain interoperability and AI integration. - $312M in tokens from Ethena, Memecoin, and Movement will unlock in November, testing market resilience amid reg
Trending news
MoreCrypto prices
More
