To: Pogeu Mahone who wrote (111291 ) 3/17/2015 4:20:30 PM From: elmatador Read Replies (1) | Respond to of 218916 FED risks causing a 1937-style stock market slump when it finally moves to raise interest rates The note emerged as Christine Lagarde, head of the International Monetary Fund, warned on Tuesday that US rate increases could trigger instability in emerging markets , leading to a re-run of the Fed-induced "taper tantrum" of 2013Dalio warns Fed of 1937-style rate risk rise3 hours ago The US Federal Reserve risks causing a 1937-style stock market slump when it finally moves to raise interest rates, one of the world's most powerful hedge fund managers has warned. Ray Dalio, founder of the $165bn hedge fund group Bridgewater Associates, is avoiding large bets on the financial markets for fear that the Fed's expected change of policy could have dramatic unintended consequences, according to a note he has sent to clients and followers, report Henny Sender and Stephen Foley in New York and Sam Fleming in Washington. The note emerged as Christine Lagarde, head of the International Monetary Fund, warned on Tuesday that US rate increases could trigger instability in emerging markets, leading to a re-run of the Fed-induced "taper tantrum" of 2013. The comments frame a high-stakes Fed meeting at which the central bank's policy makers are expected to open the door to the first US rate hikes in nearly a decade. The Fed is on Wednesday expected to remove pledges to be "patient" before lifting rates when it concludes two days of deliberations. Market expectations are for it to raise rates either in June or September, but the soaring value of the dollar and a spate of soft economic indicators have muddied the waters going into the meeting. Full story to follow on FT.com