Paul Tudor Jones Says Trade War Accelerated Rate Cuts

Investors should start adjusting their playbook to get ready for a looming Federal Reserve interest rate cut, billionaire hedge fund magnate Paul Tudor Jones said Wednesday.

The recommended strategy will entail a bet on falling rates and rising gold, as well as against the U.S. dollar and “at some point” stocks “at least initially,” the Tudor Investment founder told Bloomberg News before an event sponsored by his nonprofit JUST Capital.



“I didn’t think we’d have a first cut in 2019,” Jones said. “I don’t think we would have had that had we not gotten into this tariff battle, and so it has accelerated everything.”

Indeed, markets are betting that the Fed enacts multiple rate cuts this year, with the first one likely in July, another in September and possibly a third as soon as December, according to futures pricing tracked by CME. That comes after a 2018 that saw the central bank hike its benchmark interest rate four times to a target range of 2.25%-2.5%.

via CNBC

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza