Interest rate increases by the Federal Reserve to subdue inflation are no panacea for the economy, says Ray Dalio, founder of Bridgewater Associates, the world’s biggest hedge fund manager. “I now hear it commonly said that inflation is the big problem. So the Fed needs to tighten to fight inflation, which will make things good again once it gets inflation under control,” he wrote on LinkedIn. “I believe this is both naïve and inconsistent with how the economic machine works.