A prominent conservative hedge fund billionaire is blaming central bankers for the slow economy.
Paul Singer, the founder of the hedge fund Elliott Management, said Tuesday that policymakers needed to consider fiscal policies to spur the economy, arguing that they had created a risky environment for investors.
“Central bankers say, ‘Growth hasn’t really picked up, but in the absence of what we’re doing it would have been a lot worse,'” Singer said at the CNBC Institutional Investor Delivering Alpha conference in New York. “I don’t think that’s right.”
Singer was referring to the policies of low interest rates enacted by central banks around the world after the 2008 financial crisis.
“Eight years of ever-declining rates and ever-increasing radicalism in other monetary policies have not created a sustainable, accelerating uptick in growth,” Singer added. “What they have done is created a tremendous increase in hidden risk. Risk that investors don’t exactly know or have faced about their holdings.”
“I think it’s a very dangerous time in the global economy and global financial markets,” he added.
Instead, he said, government policymakers should focus on changing policies in tax, regulation, trade, and education, though he didn’t go into detail about such policies.
Singer is a big Republican donor but hasn’t completely backed Donald Trump, the Republican presidential nominee, and he even said earlier this year that Trump would create a depression.
Singer also said Tuesday that the bond markets were facing a bubble situation, and he recommended that investors sell their 10-, 20-, and 30-year bonds.
“These are not safe havens,” he said. “In fact, there’s a tremendous amount of risk.”
He has also recommended holding gold.