Hedge fund manager Paul Tudor Jones told CNBC on Monday he would “go all in on the inflation trades” if the U.S. Federal Reserve remains indifferent to rising consumer prices.
The hedge fund manager discussed the potential implications of Fed Chair Jerome Powell’s insistence on characterizing the recent acceleration in inflation to the fastest in 13 years as “transitory.”
The U.S. central bank’s monetary policy committee meets this week in a two-day, closed-door session to evaluate the latest economic figures, with a statement expected Wednesday followed by a press conference with Powell. Jones said he will be paying close attention.
“If they treat them with nonchalance, I think it’s just a green light to bet heavily on every inflation trade,” Jones said during a CNBC Squawk Box interview, referring to economic indicators.
“If they say, ‘We’re on [the] path, things are good,’ then I would just go all in on the inflation trades,” Jones said. “I’d probably buy commodities, buy crypto, buy gold.”
Jones told CNBC Monday he wants an allocation to bitcoin of 5%.
“The only thing that I know for certain is I want to have 5% in gold, 5% in bitcoin, 5% in cash, 5% in commodities,” said Jones.