After Moody's downgrades the US credit rating, Dalio believes that the risk of US debt is greater than Moody's believes.

The founder of Bridgewater Associates, billionaire Ray Dalio, warned on Monday that Moody's downgrade of the US sovereign credit rating underestimated the threat facing US government debt. He pointed out that the rating agency did not consider the risk of the US federal government directly printing money to repay debt. Dalio posted on the social media platform X, "You should know that credit ratings underestimate credit risk because they only assess the risk of the government not repaying debt." The founder of Bridgewater further stated, "The rating does not cover the larger risk - that a debtor country may repay its debt by printing money, causing bond holders to suffer losses due to currency devaluation (rather than a decrease in the amount of funds)." Due to the federal government's continued expanding budget deficits and soaring debt interest payments, Moody's downgraded the US credit rating from the highest Aaa to Aa1 last Friday. With this downgrade, Moody's became the last major credit rating agency to downgrade the US from its highest rating. Affected by Moody's downgrade, the three major US stock indexes opened lower on Monday, but later narrowed losses and ended up closing higher. This downgrade, coupled with the pressure of President Trump's escalating tariff policies, added further strain on the economy, with bond prices under pressure pushing yields higher. On Monday, the US 10-year Treasury yield rose by 7 basis points to 4.55% at one point, and the 30-year yield rose by about 8 basis points to 5.02%. Dalio concluded, "In other words, the risk of US government debt is more severe for those concerned about the value of their own wealth than what the rating agencies convey." According to a report from March, the assets managed by Bridgewater Associates have decreased from a recent peak of around $150 billion in 2021 to approximately $92 billion in 2024, representing an 18% decline.