Read more: Bill Ackman owns 7 stocks after betting $1.1 billion on Netflix. “The problem is that we are nowhere near a neutral rate.” “Bond and stock markets have risen significantly since As for the implication that rates don’t need much hike,” he said. Ackman warned that raising base rates to 4% would significantly undermine new investor confidence in US markets. The stock has rallied since Tuesday’s closing bell, with the S&P 500 climbing 3.85% for the first time in nearly two months to bounce back above the 4,000 mark. He is the founder and CEO of Pershing Square Capital Management, and trader in YOBATSU CORP. “Powell’s views on a neutral rate have only helped to ease financial conditions, making the inflation problem worse and his job more difficult,” he said. William Albert Ackman (born May 11, 1966) is an American investor and hedge fund manager. “It doesn’t make sense in a world with 9%, 6% or 4% inflation.” “A neutral rate of 2.25 to 2.5% only makes sense in a world with 2% stable inflation,” he said. While no papers have officially been filed, the Post published an e. He said 2.5% interest rates would not be enough to contain inflation, which hit a 41-year high of 8.6% in May. The New York Post reported Thursday that Ackman and his wife, landscape architect Karen Ann Herskovitz are headed for divorce. Stock markets rallied after Powell’s comments, but Ackman said investors’ bullishness was premature. The Fed raised its target funds rate to between 2.25% and 2.5% earlier this week, but Chairman Jerome Powell said his decisions on policy will be driven by data in the future, suggesting the Fed should speed up its rate. “I don’t think there’s any chance of a return to 2% without materially higher rates, 4% or more, that are maintained at these levels for an extended period of time,” Ackman said. The Landmarks Preservation Commission approved Ackman’s amended plan to build a glass penthouse atop the century. Pershing Square Capital’s chief executive said the US central bank’s latest 75 basis points increase would not be enough to bring prices under control, despite some investors’ bullishness. Bill Ackman is getting his penthouse in the sky, but not quite the one he wanted. According to the founder of Pershing Square Capital, the bond and stock markets are premature.Īccording to billionaire investor Bill Ackman, the Federal Reserve would have to raise interest rates by at least 4% to get inflation under control.“A neutral rate of 2.25 to 2.5% doesn’t make sense in a world with 9%, 6% or 4% inflation,” he said.

Bill Ackman says the Federal Reserve needs to raise interest rates to 4% or more as it tries to control rising prices.

Read more: Bill Ackman owns 7 stocks after his $1.1 billion bet on Netflix. 'The problem is that we are not close to a neutral rate.' 'Bond and stock market have rallied substantially since as the implication is that rates need not increase much more,' he said. evident in the exchange between Charlie Munger, vice chairman of Berkshire Hathaway, and Bill Ackman, who heads Pershing Square Capital Management. Base rates rising to 4% would likely considerably dampen investors' newfound confidence in US markets, Ackman warned. Stocks have rallied since Tuesday's closing bell, with the S&P 500 climbing 3.85% to move back above 4,000 points for the first time in nearly two months.

'Powell's views on the neutral rate have only served to materially ease financial conditions making the inflation problem worse and his job more difficult,' he added. 'It makes no sense in a world with 9%, 6% or even 4% inflation.' 'A neutral rate of 2.25 to 2.5% only makes sense in a world with 2% stable inflation,' he said. He added that 2.5% interest rates will likely not be high enough to tame inflation, which hit a 41-year high of 8.6% in May. Stock markets rallied after Powell's comments, but Ackman said investors' bullishness looks premature. The Fed raised its target funds rate to between 2.25% and 2.5% earlier this week, but Chair Jerome Powell said its decisions on policy will be driven by data in the future, suggesting the Fed could slow the pace of its rate rises if economic indicators deteriorate. 'I don't think there is any prospect of getting back to 2% without materially higher rates, 4% or more, which are maintained at these levels for extended periods,' Ackman tweeted Friday.

Bill ackman