A hedge fund tycoon warns: If the Federal Reserve becomes a "puppet," the United States will face epic punishment.

David Picton, Odaily of Picton Investments, stated that if US President Trump appoints a Federal Reserve chairman perceived as overly subservient, the bond market will quickly punish the US, while precious metals remain a good tool for hedging against political volatility. He added that "there is some correlation between the number of Trump's posts and the performance of currency devaluation trades (i.e., gold, silver, and these commodity-based hedges)." Picton's firm manages approximately C$16.6 billion (US$11.9 billion) in assets. He stated that he does not believe the Federal Reserve will ultimately lose its independence, but Trump's repeated verbal attacks on Powell are "extremely unhelpful." (Jinshi)