(Bloomberg) — Billionaire hedge fund founder Ray Dalio said central banks across the globe will be required to cut interest rates in 2024 after a period of stagflation constrains their economies, according to the Australian Financial Review.

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“We believe that we are in a tightening mode that can cause corrections or downward moves to many financial assets,” Dalio, the founder of Bridgewater Associates LP, said in an interview with the newspaper. “The pain of that will become great and that will force the central banks to ease again probably somewhere close to the next presidential elections in 2024.”

Markets are pricing in rate cuts in the US in around two years time, and also in other developed economies including the UK, according to futures. For now, much of the focus is on the speed of the tightening as more than 60 monetary authorities have already raised borrowing costs in a bid to rein in accelerating inflation.

“It is a structural inflation situation that is going to produce stagflation,” Dalio told the AFR.

Even if a global recession is ultimately averted, stagflation may endure for several years, the World Bank warned this week. The Washington-based lender cut its forecasts for global growth and said the world economy may enter a period of stagflation reminiscent of the 1970s.

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