Billionaire Ackman: Inflation is out of control! Either the Fed aggressively raises interest rates, or the market will collapse on its own.

Renowned American hedge fund investor and founder of Pershing Square Capital Management, billionaire Bill Ackman, has issued a warning stating that inflation is out of control and the market is collapsing because investors do not believe the Federal Reserve can stop high inflation unless the Fed takes more aggressive rate hikes to tighten monetary policy or there is a complete economic collapse for inflation to subside.

Renowned American hedge fund investor and founder of Pershing Square Capital Management, billionaire Bill Ackman, issued a warning stating that inflation is out of control and the market is collapsing because investors do not believe the Federal Reserve can stop high inflation unless the Fed takes more aggressive rate hikes to tighten monetary policy or the economy collapses completely, only then will inflation subside.

Inflation is out of control. Inflation expectations are getting out of control. Markets are imploding because investors are not confident that the @federalreserve will stop inflation. If the Fed doesn’t do its job, the market will do the Fed’s job, and that is what

— Bill Ackman (@BillAckman) May 24, 2022

The Federal Reserve released the minutes of its latest meeting on the 25th, emphasizing a "firm commitment and determination" to take a series of rate hikes to control inflation. Ackman tweeted on the 25th, stating that if the Fed does not intervene to address the inflation issue, the market will do the job itself.

Ackman pointed out that due to the current unprecedented job vacancies, high unemployment rates, long-term supply-demand imbalances in energy, agriculture, food, housing, and labor, as well as the ongoing wage-price spiral, inflation has not subsided.

He further bluntly stated, "Current and former members of the Federal Reserve are talking nonsense, expressing dovish views... The Federal Reserve has lost credibility due to its misreading and late attention to inflation. Solving 8% inflation and 3.6% unemployment with 200 to 300 basis points of federal funds rate, this is unprecedented in the economy."

Not only does Ackman lack confidence in the Federal Reserve, but economist Peter Schiff also believes that inflation will not slow down regardless of what the Fed does.

Peter Schiff's tweet stated, "Don't try to figure out why inflation is so high, why it was so low in the past, once you understand how inflation enters the economy and the long-term stagnation between rising asset prices and rising consumer prices, you will understand why high inflation will persist."

Don't try to figure out why #inflation is so high now, but why it's been so low in the past. Once you understand how inflation entered the economy and the long lag between rising asset prices and rising consumer goods prices, you'll understand why high inflation is here to stay.

— Peter Schiff (@PeterSchiff) May 24, 2022

The difference in views between Ackman and Peter Schiff is that Ackman seems to hope that the Federal Reserve can get things right, while Peter Schiff believes that the Federal Reserve will ultimately fail.

Ackman believes that bad policies are the main reason for nobody buying stocks, "When the Federal Reserve draws a line on the inflation issue and says at all costs, it's over. ... Then by immediately raising rates until the inflation genie goes back into the bottle to prove its seriousness. Stocks of real companies become cheap again. When investors are convinced that the days of runaway inflation are over, the market will soar. Let's hope the Federal Reserve gets it right."

This article is authorized and reproduced from Horizon News Network