By Investing.com Staff
Hedge fund manager Bill Ackman of Pershing Square (NYSE:SQ) Capital is out prodding Fed Chairman Jay Powell for not being tough enough on inflation ahead of today's expected 75 bps hike from the Fed. Ackman said Powell has lost his mojo.
On Twitter, Ackman highlights that since the close on June 14th, 2-year, 10-year and 30-year rates are down 36, 70 and 41 bps respectively. This while the Nasdaq is up 10% and the S&P 500 is up 6%. IG and HY credit spreads have also declined 14%.
"Clearly financial conditions have eased materially which has made the inflation problem worse," Ackman commented. "Why? Because the Fed has not shown serious resolve in addressing inflation."
Ackman said he doesn't understand why Powell is reluctant to say that the Fed will stop inflation in its tracks by raising rates and keeping them high until inflation is "licked."
"That is what it is going to take to kill off inflation and preserve the economy and the equity markets for the long term," Ackman said.
While calling Powell a "superb" Fed Chair during COVID, Ackman asks "where has his mojo gone?"