The Fed Urged to Wait for Inflation Signs

Fed Chair Janet Yellen’s cautious bearing to winding down easy monetary policy has been the correct approach, the Bridgewater Associates founder on “Squawk Box.” Dalio’s firm manages $163 billion overall, including nonhedge fund money.

“If I were running monetary policy, I’d wait to see for the whites of the eyes of inflation,” he said, because the Fed should not be ahead of market expectations on increasing rates. The first hike is expected in the summer, though some market watchers think it may be earlier.

The Labor Department provides another piece of the economic puzzle for the Fed to consider, when it issues the September employment Friday. Economists forecast that 215,000 nonfarm payrolls were created last month. The disappointing August growth number of 142,000 jobs was expected to be revised higher.


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