Paul Tudor Jones says the Fed is done raising rates, stocks to finish the year higher from here

Billionaire hedge money manager Paul Tudor Jones believes the Federal Reserve has finished raising involvement rates successful its combat against inflation, and the banal marketplace could grind higher this year.

"I decidedly deliberation they are done," Jones said on CNBC's "Squawk Box" of the Fed's rate-hiking campaign. "They could astir apt state triumph present due to the fact that if you look astatine CPI, it's been declining 12 consecutive months... That's ne'er happened earlier successful history."

The cardinal slope has hiked involvement rates 10 times since implicit a twelvemonth ago, taking the fed funds complaint to a people scope of 5%-5.25%, the highest since August 2007. The user terms scale has cooled considerably since peaking retired astir 9% successful June 2022. The gauge eased to 4.9% successful April.

The longtime capitalist said the marketplace setup close present is akin to mid-2006 earlier the Great Financial Crisis, wherever stocks crushed higher for implicit a twelvemonth aft the Fed stopped tightening monetary policy.

"Equity prices ... I deliberation they're going to proceed to spell up this year," Jones said. "I'm not rampantly bullish due to the fact that I deliberation it'll beryllium a dilatory grind."

Jones changeable to fame aft helium predicted and profited from the 1987 banal marketplace crash. He is besides the president of nonprofit Just Capital, which ranks nationalist U.S. companies based connected societal and biology metrics.

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