In an interview with CNBC, Greg Jensen, co-CIO of hedge fund giant Bridgewater Associates, said the U. S. economy wants some other stimulus bill value between $1. 3 trillion and $1. 7 trillion for its recovery.
According to Jensen, Bridgewater’s research shows that the government budget, through the new Federal Reserve and the CARES Act, for example, a higher US GDP by 7% of what it would have been. without anyArray
He expects a “great retreat” if lawmakers, who have been suffering for weeks to agree on the next federal assistance circular for the coronavirus, no longer enact measures for the economy.
One of the biggest issues of controversy over the next stimulus bill is the price: Democrats approved their $3 trillion opening bid in May; The GOP’s July proposal is worth about $1 trillion.
Democrats showed up to meet with White House negotiators in the middle for $ 2. 2 billion, the White House rejected the offer.
On Friday, White House chief of staff Mark Meadows said President Trump would be willing to issue a new bill priced at $1. 3 trillion, higher than the Republican Party’s initial $1 trillion bid, but well below the red Democrats’ $2. 2 trillion.
When the federal government puts an end to its fiscal stimulus, “it is a massive and unsustainable tightening of the economy,” Jensen told CNBC. “One way or another, we may fall into a trap in the coming months or two outside the gates of politics. , however, over time, this desire for the wonderful will be felt.
Bridgewater Associates is the hedge fund founded through investor Ray Dalio, who, according to Forbes, has a net worth of $16. 9 billion, Bridgewater controlled nearly $140 billion by April 2020.
Jensen also excelled between more effective public spending that goes directly into the economy (such as stimulus checks) and spending for more damage (as additional aid to state and local governments). “The cash for the states will be the negative,” he said. The stimulus controls will be directly positive. “
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I’m a last-minute news reporter for Forbes, specializing in economic policy and money markets. I finished my master’s degree in economics and business in New York.
I’m a last-minute news reporter for Forbes, specializing in economic policy and money markets. I finished my master’s degree in business and economics at New York University. Before I became a journalist, I worked as a legal assistant specializing in corporate compliance.