Fed Will Need to Buy Bonds as Stimulus Boosts Yields, Dalio Says

The U.S. Federal Reserve will need to buy more bonds as an oversupply of Treasuries drives up yields, said Ray Dalio, founder of Bridgewater Associates. The recent fiscal stimulus announced by the Biden administration will result in more bond sales to finance the spending, worsening the “supply-demand problem for the bonds, which will exert upward pressure on rates,” Dalio said Saturday on a panel at the China Development Forum, an annual conference hosted by the Chinese government. That will “prompt the Federal Reserve to have to buy more, which will exhibit downward pressure on the dollar,” he said. Nick Note: The fed in not Not NOT going to raise rates. And their is no No NO inflation… Just the opposite we are in a massive deflation and the only way out is negative interest rates. So what is going on. Pretty simple we are being tortured by the hedge funds. Reality is massive buying of stocks and stock funds are occurring as we speak. And the Algo guys are just taking the market the opposite way. This squeeze will not last much longer….