Billionaire hedge fund manager Paul Tudor Jones believes the US economy could run into major problems in the future due to its growing fiscal deficits, which could eventually hurt markets. “We have a 6%, 7% budget deficit. We’re accelerating consumption like crazy,” Jones told CNBC’s “Squawk Box” on Monday. “It should be a success because we have an economy on steroids. It’s unsustainable.” The United States government racked up another half-trillion dollars in the red in the first quarter of its fiscal year. The jump in the deficit pushed total public debt above $34 trillion for the first time. Jones echoed the sentiment of Federal Reserve Chairman Jerome Powell, who in a wide-ranging interview with “60 Minutes” on Sunday said the U.S. federal government is on an unsustainable fiscal path, making the national debt grow at a faster rate than the economy. . The founder and chief investment officer of Tudor Investment said the danger of this reckless tax spending could be obscured by the rise of artificial intelligence, which is significantly improving productivity. “The only question is if or when that manifests itself in the markets,” he said. “It could be this year, it could be next year. Productivity may be masked and it could be three or four years from now, but clearly, we are on an unsustainable path.” Jones, who rose to fame after predicting and profiting from the 1987 stock market crash, said the two big macroeconomic issues – “the debt bomb” in the United States and the rise of AI – are colliding. each other. “There are bigger issues that we’re going to focus on at some point later. It’s going to be how we stop and close the fiscal deficits that we have, as well as how we use AI to benefit all Americans, not just the Americans.” 5,000 or 10,000 extraordinarily brilliant people who are going to change our lives with it,” he said. Jones is also president of the nonprofit Just Capital, which ranks American public companies based on social and environmental metrics.