Cathie Wood, CEO of Ark Invest, said on Sunday that the U.S. government and the FED are to blame for current economic woes.
The 66-year-old describes the FED’s action as self-serving and meant to only realize the central bank’s objective at the expense of the main economy and millions of people impacted by it.
In her view, the FED’s action of raising interest rates to tame inflation has made everything worse, and the U.S. is already in a recession.
In our view, the U.S. fell into recession during the first quarter. If massive inventors bloat real GDP in the second quarter, they will unwind and hurt growth for the rest of the year. In early June, consumer sentiment fell to a record low extending back to the 1940s.
Jerome Powell, the chair of the Federal Reserve, is assuring a “soft landing” that economists maintain is currently impossible. In their preview, economists say the FED’s decision to continuously raise interest rates is doing nothing more than tilting the economy towards a painful recession.
The Way Out of Fed’s Economic Destruction
Quoting her at the 2022 Milken Institute Global Conference in Beverly Hills, California, on May 2, she said that “the markets are speaking pretty loudly right now and seem to be calling into question the Fed’s strategy.”
Cathy believes that the insanely high oil price levels are masterminded by a cartel, coupled with the Russia-Ukraine crisis. She has maintained her stance since the COVID era that innovation remains the way out. She cites how people are turning to electric vehicles to avoid paying exorbitant amounts for gas.
In like manner, diverse kinds of disruptive technology and innovations will continuously address the numerous problems the FED has caused by hiking rates.
Even still, the FED is ignoring warnings that their intervention by raising interest rates would accelerate the economic slump, plunging the U.S. into a recession. Thus far, the FED is training its eyes on taming inflation with plans of further raising interest rates in July by 0.75 percent.
Jerome Powell said they would continue unleashing all tools at their dispensation until there is clear evidence that inflation is falling, a strategy Cathie Wood said would be destructive.
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