Hedge Fund Mogul Warns: If Fed Becomes "Puppet," US Faces Epic Punishment

Odaily David Picton, head of Picton Investments, stated that if US President Trump appoints a Federal Reserve chair perceived as overly compliant, the bond market will swiftly punish the United States. He added that precious metals remain a good tool for hedging against political volatility, noting "there is some connection between the number of posts Trump makes and the performance of currency devaluation trades (i.e., gold, silver, and these commodity-based hedges)." Picton's firm manages approximately C$16.6 billion (around $11.9 billion) in assets. He expressed that he does not believe the Fed will ultimately lose its independence, but Trump's repeated verbal attacks on Powell are "extremely unhelpful." (Jin10)