Ackman calls for 75 or 100 bps increase in Fed Tomorrow by


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By employees

Hedge fund manager Bill Ackman joins the chorus, calling on the Fed to raise more than 50 basis points tomorrow, saying the Fed has let inflation spiral out of control.

Ackman said market confidence could be restored with a 75 bps surge tomorrow and in July, and a commitment to continued aggressive increases in the Federal Funds (FF) and quantitative tightening (QT) until inflation is clear.

He goes on to say, “Tomorrow, in July and beyond, 100 fps would be better.”

“Volcker needed 20% FF for comparable inflation levels,” Ackman said. “Assuming a 4% final percentage gets it done is hopium. Hopefully 5%-6% will get it done if the Fed is quick to act.”

“The sooner the @federalreserve can reach a terminal FF rate and then start easing, the faster markets can recover,” he added.

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