Paul Tudor Jones: Inflation Risk Is No Longer Transitory

Billionaire investor Paul Tudor Jones joined CNBC’s Squawk Box on Monday to explain some of the implications of the FOMC’s upcoming meeting, which is slated to be the “most important Fed meeting in Jay Powell’s career.

Jones, who is also the founder of Tudor Investment Company, does not buy into the Fed’s strong conviction that surging inflation will be temporary. “The idea that inflation is transitory, to me… that one just doesn’t work the way I see the world.” He said that the Fed has been focused too much on reaching full employment, even as financial stability and inflation are flashing red-hot signals.

The latest FOMC meeting— after which Powell is slated to discuss to reporters on Wednesday— is expected to be the most critical in the Chairman’s career thus far. The latest CPI print showed that annual inflation skyrocketed to 5% in May, but Jones, like most others, anticipate Powell will likely once again dismiss the accumulating inflationary pressures.

“If they treat these numbers – which were material events, that were very material – with nonchalance, I think that’s a green light on the inflation trade,” he explained on Squawk Box. “I’d probably buy commodities, buy crypto, buy gold.”

If, on the other hand, the FOMC decides to adjust its current course, then markets could be headed for a turbulent time. “If they course correct, if they say, ‘We’ve got incoming data, we’ve accomplished our mission or we’re on the way very rapidly to accomplishing our mission on employment,’ then you’re going to get a taper tantrum,” Jones said. “You’re going to get a sell-off in fixed income. You’re going to get a correction in stocks. That doesn’t necessarily mean it’s over.”


Information for this briefing was found via CNBC. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

Video Articles

Silver’s Finally Breaking the System | Keith Neumeyer – First Majestic

The Best News for Gold Was the Drop! – Peter Grandich

McEwen Copper: The Los Azules Feasibility Study

Recommended

Steadright To Conduct Multi-Phased Exploration At Historic Goundafa Polymetallic Mine

Goliath Resources Drills 10.72 g/t Gold Over 7.83 Metres At Surebet

Related News

Russia’s Central Bank Hikes Interest Rates to Two-Year High At 18%

Russia’s central bank raised its key interest rate by 200 basis points to 18% on...

Friday, July 26, 2024, 10:17:00 AM

Bank of Canada Expected to Raise Rates Again in a Bid to Tackle Inflation

The Bank of Canada is set to increase interest rates this week, indicating its commitment...

Monday, July 10, 2023, 08:16:55 AM

Inflation Is Here: Gold Will Benefit – The Daily Dive feat Russell Starr

Today on the Daily Dive, we see the return of Russell Starr, a frequent commentator...

Tuesday, March 2, 2021, 01:30:00 PM

US 10-Year Yield Slips to Lowest in 4 Months as Investors React to Disappointing ISM Survey

The 10-year yield and other US government bonds slumped on Tuesday, as investors abandoned the...

Wednesday, July 7, 2021, 12:22:00 PM

Jerome Powell: Rates Will Likely Be Higher Than Previously Expected

It appears Fed Chair Jerome Powell isn’t satisfied after all with the supposed “disinflationary process”...

Tuesday, March 7, 2023, 11:52:36 AM