Billionaire investor Ray Dalio warns US can't keep spending and bring down inflation

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Inflation will come down but remain ‘very high’: Billionaire investor Ray Dalio

Billionaire investor Ray Dalio gives his takes on the latest world news and provides expert analysis on the state of the economy on ‘Cavuto: Coast to Coast.’ 

During a wide-ranging interview on "Cavuto: Coast to Coast" Friday, billionaire investor Ray Dalio provided insight on the U.S. economy amid record inflation rates, predicting the Federal Reserve's quantitative tightening will "run its course" in about 18 months.

RAY DALIO: You can't keep spending and bring down inflation. So here's what I think. I think that we're not going to be able to bring an interest rate to a high enough level to give a good, real return to holders of credit without causing a contraction in economic activity. 

Ray Dalio speaks during the Skybridge Capital SALT New York 2021 conference  (REUTERS/Brendan McDermid / Reuters)

You had an 8% inflation rate. Look at what people get. And we're talking now about a 3% interest rate. And people think that that's good, right? So you're going to lose money and lose buying power. I think the inflation will come down a bit, but it's going to be very high and money is going to get a lot tighter. So you're going to have a stagflation. 

FED'S PREFERRED INFLATION GAUGE CLIMBS 4.8% IN JUNE, HOLDING NEAR 40-YEAR HIGH

WATCH PART 2 OF THE INTERVIEW HERE:

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Billionaire Ray Dalio: Clean energy, social programs are ‘very costly’

Bridgewater Associates founder and co-CIO Ray Dalio argues that in order to pay for the climate agenda the U.S. can either tax people or print more money.

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