On April 28, billionaire investor Ray Dalio warned that the U.S. economy has slipped into a stagflation environment and stated that potential successor to Federal Reserve Chair Kevin Warsh would make a mistake if he chooses to cut interest rates. Dalio noted that Warsh is now clearly expected to succeed Powell as the next Fed Chair in mid-May. If Warsh opts to cut rates at that time, it could undermine market confidence in the Fed at a critical moment. Dalio acknowledged that despite the ongoing war with Iran, the significant rebound in U.S. stocks is justified due to strong corporate earnings. However, he still recommends allocating 5% to 15% of investment portfolios to gold as an 'effective diversification tool'.