{"id":1490684,"date":"2022-05-24T20:30:30","date_gmt":"2022-05-25T00:30:30","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1490684"},"modified":"2022-05-24T20:30:32","modified_gmt":"2022-05-25T00:30:32","slug":"top-hedge-fund-manager-sees-two-ways-out-of-soaring-inflation-and-neither-one-is-pretty","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/top-hedge-fund-manager-sees-two-ways-out-of-soaring-inflation-and-neither-one-is-pretty\/","title":{"rendered":"Top Hedge Fund Manager Sees Two Ways Out Of Soaring Inflation, And Neither One Is Pretty"},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"float:left\"><div class=\"counts mashsbcount\">32<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Ftop-hedge-fund-manager-sees-two-ways-out-of-soaring-inflation-and-neither-one-is-pretty%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1490684&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><p>Pershing Square Capital Management CEO Bill Ackman said on Tuesday afternoon that there are two ways the United States can escape soaring inflation \u2014 the Federal Reserve taking a hard-line stance on rising price levels or an economic collapse.<\/p>\n<p>In a preliminary effort to curb inflation, the Fed <a href=\"https:\/\/www.dailywire.com\/news\/the-fed-jacks-key-rate-up-half-point-as-inflation-surges\">increased interest rates<\/a> by a half point earlier this month \u2014 which marked the largest rate hike since May 2000, and followed a quarter point increase from near-zero levels two months ago. However, Ackman argued that inflation is still \u201cout of control\u201d \u2014 and that markets are \u201cimploding\u201d as a result.<\/p>\n<p>\u201cIf the Fed doesn\u2019t do its job, the market will do the Fed\u2019s job, and that is what is happening now,\u201d Ackman argued on Twitter.<\/p>\n<p>Indeed, the Dow Jones has fallen from over $36,000 at the end of 2021 to under $32,000 as of Tuesday afternoon \u2014 tracking with a rise in inflation rates from 7.0% to 8.3%, as well as other economic calamities like the <a href=\"https:\/\/www.dailywire.com\/news\/economist-warns-that-world-is-in-early-stages-of-very-significant-recession\">Russian invasion of Ukraine<\/a>.<\/p>\n<p>\u201cThe only way to stop today\u2019s raging inflation is with aggressive monetary tightening or with a collapse in the economy,\u201d Ackman continued. \u201cThere 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.\u201d<\/p>\n<p>Though a stock market crash is by no means desirable, an aggressive rate hike would increase the <a href=\"https:\/\/www.dailywire.com\/news\/the-federal-reserve-just-raised-interest-rates-how-will-it-impact-your-family\">cost of borrowing money<\/a> \u2014 likely slowing economic activity as a result.<\/p>\n<p>Ackman condemned \u201cvarious current and former Fed members\u201d refraining from an aggressive stance on inflation over the past few days. Atlanta Fed President Raphael Bostic affirmed on Tuesday, for example, that the central bank should <a href=\"https:\/\/www.marketwatch.com\/story\/fed-cant-be-reckless-in-the-way-it-pushes-up-interest-rates-bostic-says-11653410349\">exercise caution<\/a> while raising rates.<\/p>\n<p>\u201cThe Fed has already lost credibility for its misread and late pivot on inflation,\u201d Ackman asserted. \u201cCurrent Fed policy and guidance are setting us up for double-digit sustained inflation that can only be forestalled by a market collapse or a massive increase in rates.\u201d<\/p>\n<p>The \u201cdownward market spiral\u201d will end when the Fed draws \u201ca line in the sand\u201d and puts \u201cthe inflation genie\u201d back in the bottle, Ackman added. \u201cMarkets will soar once investors can be confident that the days of runaway inflation are over. Let\u2019s hope the Fed gets it right.\u201d<\/p>\n<p>Unlike Ackman, President Joe Biden is <a href=\"https:\/\/www.dailywire.com\/news\/biden-sounds-off-on-whether-he-thinks-another-recession-is-inevitable\">portraying optimism<\/a> about the state of the economy.<\/p>\n<p>During a press conference earlier this week, a reporter pressed Biden on \u201crecord-high inflation\u201d and \u201cenormously high gas prices\u201d in the United States. \u201cGiven the cross-currents of the economy right now \u2014 the war in Ukraine, the China lockdowns that we\u2019ve seen \u2014 should Americans be prepared for a recession? In your view, is a recession in the United States inevitable?\u201d the reporter asked.<\/p>\n<p>Biden replied simply: \u201cNo.\u201d<\/p>\n<p>The reporter followed up: \u201cWhy not?\u201d<\/p>\n<p>Among other things, Biden pointed toward gains in employment and a handful of large foreign projects in the United States. \u201cHere\u2019s the situation,\u201d Biden said. \u201cWhen it comes to the gas prices, we\u2019re going through an incredible transition that is taking place that, God<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Pershing Square Capital Management CEO Bill Ackman said on Tuesday afternoon that there are two ways the United States can escape soaring inflation \u2014 the Federal Reserve taking a hard-line stance on rising price levels or an economic collapse. In a preliminary effort to curb inflation, the Fed increased interest rates by a half point &#8230;<\/p>\n","protected":false},"author":99,"featured_media":1490714,"comment_status":"open","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"","fifu_image_alt":"","footnotes":""},"categories":[],"tags":[],"class_list":["post-1490684","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry"],"_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1490684","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/99"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=1490684"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1490684\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/1490714"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=1490684"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=1490684"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=1490684"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}