Powell's laid groundwork for much less intervention from Fed, says VanEck Funds CEO Jan van Eck

Summary

Jan van Eck, CEO of VanEck Funds, discusses the market implications of a possible less interventionist Federal Reserve under a new chair, arguing Scott Bessent has laid the intellectual groundwork for a paradigm shift. He sees long-end yields as the vulnerable part of the curve and says VanEck has no strong dollar call this year. Van Eck remains structurally bullish on gold as a non-dollar currency alternative but notes the firm has been trimming gold because it is a large holding and could trade sideways.

• Fed chair selection and Bessent's 'Gain of Function Fed' argument point to a less interventionist Fed.
• Van Eck says the long end of the curve is where trouble lies as rates normalize and Japan/UK long-end rates rise.
• He does not have a strong dollar view and says VanEck does not make currency calls.
• U.S. economic growth is expected to be solid, though he questions the Atlanta Fed's 5%+ nowcast.
• Van Eck remains long-term bullish on gold as a currency alternative for non-dollar economies like India and China.
• VanEck has been selling gold over the past six months because it is a large holding and could go sideways near term.
• The interview briefly mentions VanEck's rare earth ETF, but no guest thesis is developed.