The US Federal Reserve’s monetary policy meeting this week is shaping up as a crucial milestone for markets gripped by inflation indecision, as another heavyweight investor attacks the Fed’s relaxed stance on prices.

Paul Tudor Jones is the latest prominent investor to take a stand against loose American monetary policy settings. The billionaire hedge fund veteran told CNBC that inflation is not likely to be transitory, and the US central bank is risking its credibility by pushing ahead with ultra-easy policies as it strives to meet its unemployment and inflation targets.

Mr Tudor Jones said economic orthodoxy has been turned upside down. “You’ve got the craziest mix of fiscal and monetary policy since the Federal Reserve Board was created,” he said.

If, at its meeting this week, the Federal Reserve says the US economy is on the right path, “then I would go all-in on the inflation trade, buy commodities, crypto and gold,” Mr Tudor Jones said. “If they course correct, you will get a taper tantrum and a sell-off in fixed income and a correction in stocks.”

The veteran investor added that if he was in charge of a pension fund he would “have as many inflation hedges on as I possibly could”.

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