Stanley Druckenmiller
Anjali Sundaram | CNBC
Billionaire hedge fund manager Stanley Druckenmiller says if the May jobs report misses expectations Friday morning, the Federal Reserve will pivot to an easing monetary policy before the end of the summer.
“If the job number is weak, given everything else they are saying, the Fed will be on a clear easing path by July,” said Druckenmiller to CNBC’s “Squawk Box.”
The economy added 180,000 jobs in May, according to economists polled by Dow Jones. The number is out at 8:30 a.m. ET.
Druckenmiller said the jobs number is important “only because they effect the Fed.”
Though the CEO of Duquesne Family Office said he largely believes jobs reports are lagging indicators about the economy. He said he still uses the monthly numbers to determine “entry and exit points” for his trading however.
On Tuesday, Federal Reserve Chairman Jerome Powell said the central bank is “closely monitoring the implications of these developments for the U.S. economic outlook and, as always, we will act as appropriate to sustain the expansion,” essentially opening the door to rate cuts.
Stocks have fallen since the beginning of May on trade headlines. Druckenmiller says he’s unsure about the direction of markets right now. He’s not overly bearish or bullish on stocks.
The Dow Jones Industrial Average was set to open up about 85 points on Friday.
