Paul Tudor Jones says the Fed is done raising rates, stocks to finish the year higher from here


watch
now

Billionaire
hedge
fund
manager Paul
Tudor
Jones

believes
the
Federal
Reserve
has
finished
raising
interest
rates
in
its
fight
against
inflation,
and
the
stock
market
could
grind
higher
this
year.

“I
definitely
think
they
are
done,”
Jones
said
Monday
on CNBC’s
Squawk
Box

of
the
Fed’s
rate-hiking
campaign.
“They
could
probably
declare
victory
now
because
if
you
look
at
CPI,
it’s
been
declining
12
straight
months.

That’s
never
happened
before
in
history.”

related
investing
news

The
central
bank
has
raised
interest
rates
10
times
since
March
2022,
taking
the
fed
funds
rate
to
a
target
range
of
5%-5.25%,
the
highest
since
August
2007.
The
consumer
price
index
has
cooled
considerably
since
peaking
out
around
9%
in
June
2022.
The
gauge
eased
to
4.9%
in
April.

The
longtime
investor
said
the
market
setup
right
now
is
similar
to
mid-2006
before
the
global
financial
crisis,
where
stocks
moved
higher
for
over
a
year
after
the
Fed
stopped
tightening
monetary
policy.

“Equity
prices

I
think
they’re
going
to
continue
to
go
up
this
year,”
Jones
said.
“I’m
not
rampantly
bullish
because
I
think
it’ll
be
a
slow
grind.”

Paul
Tudor
Jones
speaking
at
the
World
Economic
Forum
in
Davos,
Switzerland,
January
21,
2020.

Adam
Galica
|
CNBC

For
the
near
term,
the
investor
said there
would
be
some
indigestion
because
of
the
fight
to
raise
the
U.S.
debt
ceiling,
and
he
would
buy
the
dip
on
the
political
volatility.

Jones
shot
to
fame
after
he
predicted
and
profited
from
the
1987
stock
market
crash.
He
is
also
the
chairman
of
nonprofit
Just
Capital,
which
ranks
public
U.S.
companies
based
on
social
and
environmental
metrics.

He
believes
that
there’s
plenty
of
dry
powder
that’s
ready
to
be
put
to
work
after
a
particularly
dull
period
for
deal-making
activities.

“We
have
no
IPOs,
no
calendar,
no
secondaries,
valuations
are
at
19
but
nobody’s
rushing
to
offer
so
clearly,
something
is
going
on
internally
in
the
stock
market,”
Jones
said.
“From
a
flow
standpoint,
that’s
constructive.”

Watch CNBC's full interview with legendary trader Paul Tudor Jones on markets and economy