Bridgewater: The impact of tariffs on the U.S. economy has not yet fully manifested

Bridgewater states that, at present, we believe the impact of tariffs on U.S. inflation and economic growth has not yet fully manifested. Although some effects have begun to gradually transmit along the paths we anticipated, certain aspects, such as the impact of tariff uncertainty on business investment, remain relatively limited. Based on our assessment of the current state of the U.S. economy and the Federal Reserve's policy orientation, we believe: the U.S. economy is approaching full capacity, fiscal policy may drag on growth in the short term, but once budget measures such as the "Big and Beautiful Act" are implemented, fiscal policy will support the economy. The likelihood of a significant adjustment in U.S. monetary policy in the near term is low, which is generally consistent with current market pricing