Renowned investor Paul Tudor Jones predicts that the US dollar will drop by 10% in the coming year as short-term interest rates decline significantly.
Jones, the founder of the $16 billion macro hedge fund Tudor Investment Corp., believes that as the yield curve steepens, the dollar may depreciate by 10% within a year.
Jones also stated that when Federal Reserve Chair Jerome Powell’s term ends next year, President Donald Trump is likely to appoint a “super dovish” chairperson of the Federal Reserve to align with his growth agenda.
He mentioned that US Treasury Secretary Scott Bessent is likely to be Trump’s candidate. Jones believes that Bessent’s deep involvement in trade and tax policy positions him well to deliver the rate cuts Trump desires.
Jones further noted that Trump’s signature tax legislation will pose a threat to the stock and bond markets, predicting that it will prompt the Federal Reserve to cut interest rates within the next 12 months.
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