American billionaire investor Stanley Druckenmiller expressed dissatisfaction with the economic policies of the Biden administration.
He said in a TV interview on Tuesday: If I were a professor, I would give him a \’fail\’.
American hedge fund tycoon Bill Ackman forwarded Drucker Miller\’s interview video and commented: Stanley is absolutely right. His views on deficits and the economy must be read.
Tesla CEO Elon Musk responded: Stanley is indeed smart.
In the interview, Druckenmiller was particularly angry about what he saw as misjudgments of the macroeconomic situation on behalf of Biden, the Fed and the Treasury Department.
He believes that all three have overestimated the severity of the economic crisis caused by the epidemic and therefore implemented wrong policies.
Druckenmiller said the U.S. government misdiagnosed the new coronavirus pandemic and believed we were going to fall into a depression.
The Federal Reserve has done the same.
When I first started, I was worried too.
The Fed finally pivoted – better late than never.
The Treasury Department is still acting like we\’re in a depression.
Druckenmiller said that without the level of fiscal spending under Bidenomics, the U.S. could have emerged from a recession it was once technically in. Now that the recovery is almost complete, some of its policies have caused the deficit to soar.
The structural feature of Biden economics is to spend massive amounts of government funds across the country to maintain the flow of funds in the economy and stimulate economic growth.
However, critics say it has led to a record $34 trillion national debt, the result of all government spending.
Druckenmiller also criticized the Federal Reserve and its Chairman Jerome Powell for over-exciting markets at the end of the year, when the Fed began signaling an imminent rate cut, even as inflation had fallen significantly from 9% in June 2022.
But inflation could still rebound. Or remain extremely stubborn in the last mile.
In fact, Powell himself later said that he needed more data to show that it was heading towards these levels.
Instead, Powell acted too hastily and predicted as many as three interest rate cuts at the time.
Druckenmiller said: In a way, I felt like they turned the ball over at the five-yard line toward the end of the game.
Markets cheered Powell\’s forecast, which suggested the current monetary tightening cycle is over.
Overjoyed economists began predicting as many as six interest rate cuts in 2024. This caused the Dow Jones to surge to record levels. Bulls claimed that a recession had been completely avoided.
\”They\’ve reignited the financial environment,\” Druckenmiller said.
Throughout the interview, Druckenmiller was particularly unhappy with Powell. He had been criticizing Powell for speaking too much in public.
Parsing the carefully chosen words of the Fed chair, known as a Fed speech, has become an art in itself.
But for Druckenmiller… it was a bad decision.
Druckenmiller says: Don’t go on “60 Minutes.”
He was referring to an interview Powell gave to the show in February.
You\’re not a rock star – okay.
You are the chairman of the Federal Reserve.
You should set monetary policy in the interest of the country.
Druckenmiller believes the Fed should be more independent and not provide forward guidance at all. All I have to do is say nothing and do what the Fed chairman used to do.
Legendary investor says Biden fails economics, Musk responds
US billionaire investor Stanley Druckenmiller expresses dissatisfaction with Biden administration\’s economic policies
Like (0)
Infineon plans to cut jobs at Regensburg plant in Germany
Previous
May 8, 2024 3:56 pm