It's not so long ago most of last year, in fact that the US central bank was aiming to keep raising rates steadily. What has happened to derail the process so rapidly?
Tudor Jones blames escalating protectionism and the trade war between the US and China in particular. "This rate-rising cycle was cut short because of the tariffs, so we need to see what impact they're going to have." That's presented both the Fed and investors with a challenge that most of them haven't seen before.
"Remember, we've had 75 years of expanding globalisation and trade, and we've built the machine around the belief that that was the way the world was going to be. Now all of a sudden it's stopped and we're reversing that."
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Tudor Jones reckons that the consequences could be ugly. "We haven't seen tariffs since 1929/1930... I think it will have a bigger impact economically than the market thinks" it will. Indeed, "it's possible that we go into recession... and that rates in the US go back to zero, and of course, in that situation gold's going to scream".
-
Regions lead with strongest annual house price growth – HalifaxHouse prices have remained ‘remarkably stable’ over last six months, down by just £48, according to Halifax
-
Will Comstock crash – or soar?Opinion The upside for Comstock, a solar panel-recycling and biomass-refining group, dwarfs the downside, says Dominic Frisby.
