Hedge Fund Picton Says Markets Will Punish a Fed That Bows to Trump

Group 1 - The head of Picton Investments warns that bond markets will react quickly if President Trump appoints a Federal Reserve chair perceived as too compliant, indicating that precious metals are a reliable hedge against political instability [1][5] - David Picton highlights a correlation between the activity on Truth Social and trends in the debasement trade, which includes gold and silver as commodity-based hedges [2] - Recent market sentiment has shifted towards "Sell America," with gold and silver prices rising following Trump's intensified criticism of Fed Chair Jerome Powell and his aggressive stance on Greenland [3][4] Group 2 - Picton, managing approximately C$16.6 billion ($11.9 billion), expresses confidence that the Fed will maintain its independence despite Trump's attacks on Powell, but warns that a Fed chair who capitulates to presidential pressure could face swift market repercussions [5] - The investment outlook for the year suggests a strong possibility of global economic acceleration driven by stimulus measures, with major economies implementing monetary and fiscal policies, including infrastructure projects and increased defense spending [6]