Paul Tudor Jones Says Fed Won't Raise Interest Rates in 2019

(Bloomberg) -- The Federal Reserve is unlikely to raise interest rates in 2019 as falling commodities prices threaten a slowdown of the economy, Paul Tudor Jones said.

“I don’t think they’re going to hike in 2019," the hedge fund manager said in an interview Monday on CNBC.

Jones, who got his start as a cotton trader, said the drop in commodities prices is putting deflationary pressure on the economy. "I always look at commodities because they are a great leading indicator," he said.

The markets are likely to see “a lot more volatility next year,” said Jones, the founder of Tudor Investment Corp., adding he sees a two-sided market that could move 10 percent higher or lower next year.

“I’m going to buy the hell out of it at 10 lower,” he said. “That’s a lay-up.”

Jones also said that we’re “probably sitting on a big global credit bubble” and he hopes he isn’t underestimating the potential negative impact of it.

On trade disputes between China and the U.S., Jones said they are having an "emotional aspect" on the markets.

Jones also spoke in the interview about his non-profit JUST Capital Foundation, which ranks U.S. companies that engage in “just business behavior.”

Wealth disparity is the biggest threat to capitalism, the billionaire said. "We’ve got too many Americans left behind," he said. "There has to be a better balance."

Jones has an estimated net worth of $3.3 billion, according to the Bloomberg Billionaires Index.

To contact the reporter on this story: Alan Mirabella in New York at amirabella@bloomberg.net

To contact the editors responsible for this story: Margaret Collins at mcollins45@bloomberg.net, Vincent Bielski

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