American billionaire investor Stanley Druckenmiller expressed dissatisfaction with the economic policies of the Biden administration. In a television interview on Tuesday, he said: "ifDmarketnftblockchainI'm a professor.DmarketnftblockchainI will give him a 'fail'. "
Us hedge fund mogul Bill Ackerman forwarded a video of Drucker Miller's interview and commented: "Stanley is absolutely right. His views on the deficit and the economy must be read."
Tesla CEO Elon Musk responded: "Stanley is really smart."
In this interview, Druckenmiller was particularly angry at the miscalculation of the macroeconomic situation by his perceived representatives, Joe Biden, the Federal Reserve and the Treasury. He believes that all three have overestimated the seriousness of the economic crisis brought about by the epidemic, so they have implemented the wrong policies.
Druckenmiller said the US government "misdiagnosed the COVID-19 pandemic and thought we were going to fall into a depression." The Fed did the same. At first, I was worried, too. The Fed finally turned-better late than never. The Treasury is still acting as if we were in a depression. "
Druckenmiller said that without the fiscal spending level of Biden Economics, the United States could have emerged from the technical recession, but now the recovery is almost complete, and some of its policies have led to a surge in the deficit.
The structural feature of "Biden Economics" is to spend a large amount of government funds across the country in order to maintain the flow of funds in the economy and stimulate economic growth. However, critics say this has led to a record $34 trillion in national debt, the result of all government spending.
Druckenmiller also criticized the fed and its chairman, Colin Powell, for overexcited markets at the end of the year, when the fed began to hint that interest rates were about to be cut, at a time when inflation had fallen significantly from 9% in June 2022. But inflation could still rebound or remain extremely stubborn in the last mile. In fact, Powell himself said later that he needed more data to show that it was moving towards these levels. On the contrary, Powell acted in undue haste and predicted interest rate cuts as many as three times at the time.
"in a way, I think they made a mistake on the five-yard line at the end of the game," Druckenmiller said. "
Powell's forecast cheered the market, and the current cycle of monetary tightening is expected to be over. Overjoyed economists began to predict as many as six interest rate cuts in 2024, causing the Dow to soar to record levels, with bulls claiming that the recession had been completely avoided.
"they rekindled the financial environment," Druckenmiller said. "
Throughout the interview, Druckenmiller was particularly dissatisfied with Powell, who has been criticizing Powell for speaking too much in public. Parsing the carefully considered words of the Fed chairman, the so-called Fed speech, has become an art in itself. But for Druckenmiller, it was a bad decision.
"Don't be on 60 minutes," Druckenmiller said. " He was referring to Powell's interview with the program in February. "you're not a rock star-- all right. You are the chairman of the Federal Reserve. You should make monetary policy in the interests of the country. "
Druckenmiller believes that the Fed should be more independent and provide no forward guidance at all. "all I have to do is say nothing and do what the Fed chairman used to do."