Stan Druckenmiller Slams Bidenomics — Advocates for Less Government to Boost Innovation

Renowned investor Stanley Druckenmiller has criticized Bidenomics, stating that he would give it an F if he was a professor. “Treasury is still acting like we’re in a depression,” he said, adding that “they’ve spent and spent and spent.” Moreover, Druckenmiller stressed: “Now, you’ve got blockchain, you’ve got AI, you’ve got the whole thing. All government needed to do was get out of their way and let them innovate.”

Druckenmiller Criticizes Fed Policies

Investment guru Stanley Druckenmiller, chairman and CEO of Duquesne Family Office, discussed a variety of topics in an interview with CNBC this week.

He criticized the Federal Reserve for its forward guidance and the media presence of Fed Chair Jerome Powell, suggesting that the central bank should revert to a more traditional and less public approach to monetary policy, making rate adjustments as needed. He argued that this would better serve the country’s economic needs rather than maintaining a high-profile, communicative stance which he believes complicates policy implementation. Druckenmiller opined:

When you need to raise rates, raise ’em. When you need to cut ’em, cut ’em. Don’t go on 60 Minutes. You’re not a rock star. You’re the Fed chairman. You’re supposed to be running monetary policy for the good of the country, not to be going on 60 Minutes.

The renowned investor remarked that former Fed Chair Ben Bernanke engaged in several actions, which he now views unfavorably in hindsight. “One of the worst was forward guidance,” Druckenmiller said, adding: “You got a bunch of academics talking about sending message to the market. You know, as a practitioner, I’d rather them just get rid of the whole forward guidance and just do their job. When you need to raise rates, raise rates. When you need to cut them, cut them.”

‘All Government Needed to Do Was Get out of Their Way and Let Them Innovate’

Druckenmiller also criticized the Treasury under the Biden administration. “Bidenomics, if I was a professor, I’d give them an F. Basically, they misdiagnosed Covid and thought … we were going into a depression. The Fed did too … The Fed eventually pivoted — better late than never. Treasury is still acting like we’re in a depression.”

The Duquesne Family Office boss further shared: “It’s interesting because I’ve studied the Great Depression and you had a private sector crippled with debt, with basically no new ideas. So interventionist policies were called for and were effective.” However, he pointed out: “The private sector could not be more different today than it was in the Great Depression. Their balance sheets are fine. They’re healthy. And have you ever seen more innovative ideas that the private sector could take advantage of?” Druckenmiller concluded:

Now, you’ve got blockchain, you’ve got AI, you’ve got the whole thing. All government needed to do was get out of their way and let them innovate.

“Instead, they’ve spent and spent and spent,” he continued, cautioning that his “new fear now is that spending and the resulting interest rates on the debt that’s been created are going to crowd out some of the innovation that otherwise would have taken place.”

Do you agree with Stan Druckenmiller about the economy and what the government and the Federal Reserve should do? Let us know in the comments section below. #Write2Earn