Hedge fund billionaire Ackman urges Fed to be more aggressive fighting inflation, warns of economic collapse

FAN Editor

Pershing Square Capital Management CEO Bill Ackman is calling on the Federal Reserve to take aggressive action to curb inflation, warning that the U.S. economy could collapse unless the central bank changes its posture.

“Inflation is out of control. Inflation expectations are out of control. Markets are imploding because investors are not confident that the @federalreserve will stop inflation,” the hedge fund manager began in a lengthy Twitter thread on Tuesday. “If the Fed doesn’t do its job, the market will do the Fed’s job, and that is what is happening now.”

The billionaire said that “the only way to stop today’s raging inflation is with aggressive monetary tightening or with a collapse in the economy,” arguing that “there is no prospect for a material reduction in inflation unless the Fed aggressively raises rates, or the stock market crashes, catalyzing an economic collapse and demand destruction.”

INFLATION HURTING ‘EVERY ASPECT’ OF AMERICAN BUSINESS: ANDY PUZDER

Bill Ackman

William “Bill” Ackman, founder and chief executive officer of Pershing Square Capital Management LP, gestures as he speaks during a Bloomberg Television interview in London, U.K., on Wednesday, Jan. 14, 2015. Billionaire activist investor Ackman cons (Photographer: Chris Ratcliffe/Bloomberg via Getty Images / Getty Images)

BLACKROCK WARNS OF GROWING RECESSION RISK AS FED FIGHTS INFLATION

Ackman went on to blast current and former Fed officials for making dovish comments in recent days, and warned that if the central bank does not change course the U.S. could be on track for “double-digit sustained inflation.”

Fed Chairman Jerome Powell has signaled that further rate hikes are on the way at forthcoming meetings, as the central bank tries to curb the highest inflation the country has seen in decades. But Ackman says the Fed has to show that it is serious, after already losing “credibility for its misread and late pivot on inflation.”

GAS PRICES STILL RISING, SOME STATES SEE WEEKLY PRICES JUMP DOUBLE DIGITS

Federal Reserve Chairman Jerome Powell

Federal Reserve Chairman Jerome Powell (AP / AP Newsroom)

“That is why I believe there are no buyers for stocks,” Ackman tweeted. “How does the downward market spiral end? It ends when the Fed puts a line in the sand on inflation and says it will do ‘whatever it takes.’”

GET FOX BUSINESS ON THE GO BY CLICKING HERE

“Markets will soar once investors can be confident that the days of runaway inflation are over,” he wrote. “Let’s hope the Fed gets it right.”

Free America Network Articles

Leave a Reply

Next Post

At least 2 dead, multiple injured after "active shooter" reported at Texas school

At least two people were killed, a 66-year-old woman is in critical condition and several others have been hospitalized, according to two hospitals, after an “active shooter” was reported at a Texas elementary school. The shooter, who caused a district-wide lockdown on Tuesday, is now in custody, police said.  The […]