After the Fed released minutes of its last meeting, the bond market signaled it fears the Fed will not be aggressive enough with its rate cutting.Market Insiderread more
Analysts generally doubt how effective the People Bank of China's latest interest rate announcement will be in significantly helping businesses grow.China Economyread more
The Fed minutes also note that "a couple" members wanted a 50 basis point cut, based primarily on the weak inflation readings.The Fedread more
Flight bookings to Hong Kong have fallen 10%, hit by the unrest in the city, said Alan Joyce, the chief executive of Australian carrier Qantas Airways.Airlinesread more
Japanese manufacturing activity shrank for a fourth straight month in August as export orders fell at a sharper pace.Asia Marketsread more
These in-demand skills can command top pay packets, says Feon Ang of professional networking site LinkedIn.Get Aheadread more
The Washington governor had centered his campaign around climate change, calling it "the most urgent challenge of our time."Politicsread more
The inversion is seen by many veteran traders as an important recession omen, though the timing on the eventual downturn is less predictable.Bondsread more
Here's what Nordstrom reported for its fiscal second-quarter earnings.Retailread more
The sexy image that once boosted Victoria's Secret has been haunting L Brands more recently, as women are steering clear of the brand's hot pink, lacy and bejeweled lingerie.Retailread more
Ford is one of four automakers that reached a voluntary agreement with California on fuel efficiency rules, defying Trump and his administration's effort to strip the state of...Autosread more
In a brief LinkedIn post Thursday, the Bridgewater Associates head said a soft currency is exactly what the U.S. doesn't need right now.
Dalio described a weak dollar as "a hidden tax on people who are holding dollar-denominated assets and a benefit to those who have dollar-denominated liabilities."
In other words, while the greenback decline might make U.S. debt look cheaper on a relative basis, it also makes it less attractive to hold for foreign governments who are counted on to buy bonds and help keep the government running.
More specifically, Dalio said a weakened dollar would: reduce Americans' buying buyer around the world; devalue debt and hurt foreign holders; provide paper wealth to holders of assets like stocks; increase inflation; and boost domestic activity.
"None of this is what the U.S. economy needs now," he wrote. "While it's described as a desirable and intended thing, it might not be a choice."
He further warned that dollar holdings are high right now "so rebalancings should be expected over time." That could be perilous at a point where "U.S. dollar bonds look unattractive and trade tensions with dollar creditors intensify."
Mnuchin made comments advocating for a weak dollar on Wednesday at the World Economic Forum in Davos. On Thursday he tried to elaborate on his position, noting that the administration still backs a strong dollar in the long term.
However, the dollar fell against its global competitors both days, reaching a 12-month low Thursday, and is down more than 11 percent over the past 12 months. President Donald Trump himself has said that a weak dollar is preferable for the U.S. economy at this point.
Dalio, who runs the largest hedge fund in the world with $150 billion in assets, was not alone in his criticisms. Banking analyst Dick Bove of the Vertical Group also said Mnuchin's comments threaten to unravel the economic recovery.
Interestingly, Moody's Investors Service said the dollar's longer trajectory could be higher, despite the dive this week.
"We expect to see dollar volatility as U.S. policy discussions progress, but overall for 2018 we expect the U.S .dollar to strengthen slightly given the continued tightening of US monetary policy," said Elena Duggar, associate managing director at Moody's.
WATCH: Mnuchin not worried about the dollar.