Fed raised prices to point out where it hurt property prices

The central bank must begin to look at the impact of monetary policy on property prices before economic conditions, Dalio said, adding that he would fail at precautionary level on interest rate hikes. 19659003] Fed has already raised interest rates three times this year and another is expected in December.

"We have raised interest rates to a level that damages property prices," said the founder of Bridgewater Associates in an interview with CNBC's "Squawk Box" "We are in a situation right now. Fed must look at property prices before looking at economic activity. It's a difficult position."

On Wednesday, the Federal Reserve rapporteur Jerome Powell expressed confidence in economic strength and the aforementioned markets must wait for the idea that the central bank could raise interest rates at any time from 201[ads1]9. [19659003] Last month, Powell said that the cost of borrowing money was far from so-called neutral, sparkling concerns about a more aggr essential Fed tightening that led to October was the worst month for the S & P 500 since September 2011.

President Donald Trump has repeatedly expressed frustration with central bank moves to raise prices, arguing that Fed may interfere with US economic recovery.

In the CNBC interview, Dalio laughed at the idea that the Fed needs to raise prices so that there will be room for Do cuts if the economy should take a big drop. "It sounds like a pretty bad logic for me," he said.

Dalio also said that the US is late in the business cycle, maybe the seventh or eighth inning, and asse TS is "fully priced."

Bridgewater Associates is the world's largest hedge fund, with about $ 160 billion in total assets.

In June it was revealed that Bridgewater became a partnership and gives top executives more power in running the fund. While Dalio remains co-CIO and co-chairman, he gave up his role as CEO in March 2017.

Dalio, who started Bridgewater in his two-bedroom apartment in New York City in 1975, now has an estimated net worth of 18.1 billion dollars, according to Forbes.