The Federal Reserve needs to 'shock and awe' the market with one big rate hike 'to restore its credibility,' says hedge-fund star Bill Ackman

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Billionaire hedge-fund manager Bill Ackman says the Federal Reserve needs to deliver old-fashioned shock and awe to financial markets with a big rate hike.

Billionaire hedge-fund manager Bill Ackman said the Federal Reserve needs to deliver old-fashioned “shock and awe” to financial markets by delivering a much larger onetime increase to benchmark interest rates to combat inflation.

“The unresolved elephant in the room is the loss of the Fed’s perceived credibility as an inflation fighter and whether 3 to 4 would therefore be enough,” he wrote. Fed Chairman Jerome Powell told the Senate Banking Committee earlier in January that a surge in inflation, rising to highs not seen in about 40 years, came from the imbalance of supply and demand. While the Fed can cool demand, it will get some help as supply constraints ease, he said.

Read: Here’s how the Federal Reserve may shrink its $8.77 trillion balance sheet to combat high inflation, according to a former Fed staffer See: Get ready for the climb. Here’s what history says about stock-market returns during Fed rate-hike cycles.

 

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This guy...🙄 Why

Recommendations from the biggest bear in the history of the market. Bill Ackman is a thief and is constantly speaking to the media to sell his narrative.

Lol this asshole wants to tank the market to buy the bottom that’s all I read 🤣

Yeah, that would be a terrible idea.

He was long during Christmas. Now possibly shorting it.

Considering the market is meaningfully reacting to the feds comments on higher rates, I think they already have all the credibility they need.

Inflation is a short term issue, supply line bottle necks from covid induced economy. 6-9 months this will be in the past, and inflation will return to normal, historical levels

Market makers doing what they do best, fucking retail

Ackman shock and awed all of his soac investors when he robbed them blind BillAckman

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