Bill Ackman Just Said 4 Words Blasting the Fed's Latest Rate Hike: "Just Made a Mistake." Here's Why He Thinks Higher Rates Could Backfire on AI-Driven Inflation.
The AI build-out may require the Federal Reserve to change how it fights inflation.
Overview
On Sept. 16, the Federal Reserve raised the federal funds rate by 25 basis points to a range of 3.75%-4.00%, marking the central bank's first rate hike since July 2023. The vote was unanimous, 12-0.
The rate increase was made in an effort to tamp down inflation, which has been running above the Fed's 2% target for the past five years.
Details
However, famous value investor and Pershing Square Management (NYSE: PS) CEO Bill Ackman thinks the Fed is making a big mistake. According to a recent social media post, Ackman worries that the recent rate hike may backfire, worsening inflation. Here's how that could happen.
Source
Originally published at www.fool.com.
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