Ackman Calls for 75 or 100 bps Hike from Fed Tomorrow

Hedge fund manager Bill Ackman is joining the choir in calling for the Fed to do more than a 50 bps hike at tomorrow's rate decision, saying the Fed has allowed inflation to get out of control.

Ackman said market confidence can be restored with a 75 bps hike tomorrow and in July, and a commitment to continued aggressive federal funds rates (FF) increases and quantitative tightening (QT) until it is clear that inflation has been tamed.

He goes further and says "100 bps tomorrow, in July and thereafter would be better."

"Volcker needed 20% FF for similar levels of inflation measured comparably," Ackman stated. "Assuming a 4% terminal rate gets it done is hopium. Hopefully, 5%-6% gets it done if the Fed gets there quickly."

"The sooner the @federalreserve can get to a terminal FF rate and thereafter can begin to ease, the sooner the markets can recover," he added.

By StreetInsider Staff

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