2 days ago
Paul Tudor Jones Says Bessent Is Likely Trump Pick for Fed Chair
(Bloomberg) -- Paul Tudor Jones said President Donald Trump is likely to appoint an 'uber dovish' Federal Reserve chair to accommodate his growth agenda, contending that Treasury Secretary Scott Bessent would likely be his pick when Jerome Powell's term ends next year.
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Jones, 70, said in an interview with Bloomberg Television Wednesday that two people being floated for the appointment — Bessent and Kevin Warsh, a former member of the Fed Board of Governors — are 'fabulous names.' But Trump's focus on growth and loyalty make Bessent a stand-out candidate, Jones said.
Jones, who founded the $16 billion macro hedge fund Tudor Investment Corp., also said Trump's signature tax bill poses a threat to stock and bond markets down the line. Jones predicts it will spur rate cuts over the next 12 months.
'The Big, Beautiful Bill is really interesting — the name of it is a genius in branding,' Jones said. 'What is the counterfactual to the Big, Beautiful Bill? If you had to balance the budget, it would probably be the Big Beastly Bill.'
If he were in Trump's shoes, Jones said, 'the first thing I would do is I would appoint the most dovish central banker I could find to deliver interest-rate cuts.'
Then, he would push through an austerity package with a tax hike on top earners and broad-based cuts to programs including Social Security, Medicaid and defense spending, Jones said. He would also press to reduce rates to 2.5%, contending there 'will be a point when the markets demand it.'
'At some point, the bond market will call B.S. on governments around the world playing chicken with them,' he said.
(Updates with additional context throughout.)
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