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The Federal Reserve isn’t doing its job to fight runaway inflation – and unless the central bank tightens monetary policy and raises interest rates “more aggressively,” the ongoing stock market sell-off will be complete. It could turn into an “economic collapse”. -fund billionaire Bill Ackman on Tuesday.

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Billionaire investor Bill Ackman, founder and CEO of hedge fund Pershing Square Capital Management, said the Federal Reserve has lost credibility because it failed to contain rising inflation. series of tweets on Tuesday.

“Markets are bursting because investors don’t have confidence that the Federal Reserve will stop inflation,” and with consumer prices rising 8.3% year-on-year in April, inflation is “out of control,” Ackman said.

The only way to reduce inflation is by more decisive action from the Federal Reserve, and if it doesn’t, the consequences will be A stock market crash that sends the economy into recession.

Not only has the Fed already “lost credibility for its missteps and late pivot on inflation,” but many current and former Fed officials are “weird” by proposing a modest hike in rates and a pause in the fall. commented,” Ackman explains.

The central bank’s current monetary policy and further guidance is setting investors up for “double-digit sustained inflation that can only be prevented by a market downturn or a steep rise in rates” and is the reason why it is today. There are no buyers for the stock” market, he says.

The current “downward market spiral” will only end if the Fed “draws a line in the sand on inflation and says it will do ‘whatever it takes’,” Ackman insists, adding that the central bank should “as long as rates remain low.” Growth has to continue “The genie of inflation is back in the bottle.”



Credit: www.forbes.com /

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