Paul Tudor ​Jones predicts inflation poses a threat to markets



​A billionaire hedge fund manager​ said he believes inflation won’t be going away anytime soon and the problem represents a dire threat not only to the markets but also to society. ​

“I think to me, the No. 1 issue facing Main Street investors is inflation, and it’s pretty clear to me that inflation is not transitory,” ​Paul Tudor ​Jones said Wednesday on CNBC’s “Squawk Box.” “It’s probably the single biggest threat to certainly financial markets and I think to society just in general.”​

Jones, who ​founded Tudor Investment Group and predicted the 1987 stock market crash, said the federal government has injected trillions of dollars into the economy to rescue it from the downturn caused by the coronavirus pandemic – and that stimulus will feed inflation. ​

“Inflation can be much worse than what we fear. We have the demand side of the equation … and that is $3.5 trillion greater than what it normally would have … just sitting in liquid deposits,” Jones said.

“They can go into stocks, or crypto, or real state, or be consumed, so that’s a huge amount of dry powder just sitting waiting to be utilized at some point, which is why inflation is not going away,” he said.

Jones said he expects prices to continue to climb ​after inflation rose 5.4 percent in September over the same time last year — the highest rate since 2008.

A shopper guides a cart past a line of gigantic boxes of breakfast cereals in a Costco warehouse on Thursday, June 17, 2021,
Jones said inflation could potentially worse than had previously been thought.
David Zalubowski/AP

A poll released on Wednesday found that 62 percent of Americans say President Biden is somewhat or very responsible for the rising inflation rate. 

Forty percent said Biden’s policies are very responsible and 22 percent said they are somewhat responsible for inflation, which has hit its highest rate in 13 years, a Morning Consult/Politico poll found.

Another 18 percent believe the administration’s policies are not too responsible, and 10 percent said they aren’t responsible at all.​


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