Stanley Druckenmiller gives Biden's economic policies an 'F,' blames the Fed for reigniting inflation

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Billionaire investor Stanley Druckenmiller on Tuesday blasted fiscal and monetary authorities, including Treasury Secretary Janet Yellen and Fed Chair Jerome Powell, for causing high inflation. “Bidenomics, If I was a professor, I’d give him an ‘F,'” Druckenmiller said. Druckenmiller also called himself a “man without a candidate” as he feels a Donald Trump presidency would fuel inflation. “To some extent, I feel like they fumbled on the five yard line,” he said of the Fed.

Reckless government spending enabled by the Federal Reserve is hurting average Americans and endangering President Joe Biden’s chances at getting reelected, billionaire investor Stanley Druckenmiller said Tuesday.

During an appearance on CNBC’s “Squawk Box,” the head of Duquesne Family Office who made his name betting against the British pound in the early 1990s blasted fiscal and monetary authorities, including Treasury Secretary Janet Yellen and Fed Chair Jerome Powell.

In addition, he called “Bidenomics” a failure and said consumers are paying the price in terms of higher inflation.

“There does seem to be a lot more recognition … of the fiscal situation facing us. Everybody seems to get it but Yellen, who just keeps spending and spending,” Druckenmiller said. “I think it’s dumb politically because it’s causing inflation and it doesn’t take a genius to figure out that the average American is getting hurt by the inflation.”

Druckenmiller’s comments come with the Fed still trying to bring inflation down, as policymakers have dashed investors’ hopes for aggressive interest rate cuts this year.

Getting markets enthused about rate reductions was a mistake because it set financial conditions “on fire,” he said.

“It seemed to me the Fed was in a perfect position. Inflation was coming down, financial conditions were tightening,” he said. “To some extent, I feel like they fumbled on the five-yard line.”

The Fed’s mistake

Though Druckenmiller said his firm was “a major beneficiary” of the jump in asset prices and easing conditions, he still thinks the Fed’s pivot in late 2023 to push harder on the idea that rate cuts were coming was a mistake. The Fed at that point only upped its unofficial forecast from two to three cuts. However, investors interpreted comments from Powell in December to mean that a substantial policy easing was ahead.

Elected officials generally welcome low interest rates.

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The full article is available here. This article was published at CNBC Economics.