By Investing.com Staff
Not only are consumers losing confidence due to high inflation, but now CEOs are too, according to hedge fund manager Bill Ackman of Pershing Square (NYSE:SQ) Capital.
"Business is a confidence game. CEOs are losing confidence because of uncertainty due to the perceived risk of sustained high inflation," Ackman said.
Ackman blames the Fed for this and said they must now act "decisively to subdue inflation and inflationary expectations."
The billionaire has been very vocal recently that the Fed is behind the curve and must act aggressively to curb inflation.
He sees the Fed raising another 75 bps in July and 50 bps or more in subsequent meetings. He thinks a 5 percent federal funds rate is in the cards for next year. Currently, the federal funds rate is at 1‑1/2 to 1-3/4 percent.
Ackman adds that if the Fed can in fact act decisively on inflation then business confidence will be restored.