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Bill Ackman sees risk of hard landing if Fed doesn't start cutting soon

Published Nov 29, 2023 08:30AM ET
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© Reuters. Bill Ackman sees risk of hard landing if Fed doesn't start cutting soon

Hedge fund manager Bill Ackman, fresh off his prescient call this summer to short bonds, now said he expects the Fed to start cutting interest rates much sooner than the market anticipates or the economy faces the risk of a "hard landing", Bloomberg News reported.

Ackman, the founder of Pershing Square Capital, said the Fed could start cutting rates in the first quarter of 2024, versus a June cut which is widely expected by the market.

The hedge fund manager, who will be speaking on an upcoming episode of The David Rubenstein Show: Peer-to-Peer Conversations, cited that the real rate of interest keeps rising. This, according to Ackman, is what impacts the real economy.

Ackman said the current 5.5% federal funds rate rate, versus a 3% inflation rate, is a "very high real rate of interest."

The hedge fund manager stated he sees the risk of a hard landing if the Fed doesn't start cutting rates soon as he is already seeing evidence of a weakening economy.

“I think there’s a real risk of a hard landing if the Fed doesn’t start cutting rates pretty soon,” Ackman commented.

Bill Ackman sees risk of hard landing if Fed doesn't start cutting soon
 

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Comments (14)
Ronald Warren
Ronald Warren Nov 29, 2023 12:38PM ET
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If you check out the charts. Inflation is following an identical track to the 70's and 80's. If it continues, the dip is almost over, and we'll head to 12% within a year.
Anik Boss
Anik Boss Nov 29, 2023 11:21AM ET
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very nice
Co Gonz
Co Gonz Nov 29, 2023 10:04AM ET
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Cut rates to let inflation increase again… great plan
TechTrend Trades
TechTrend Trades Nov 29, 2023 9:41AM ET
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Good luck sir.
Gurula App
Gurula App Nov 29, 2023 9:40AM ET
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Hey; We called 5% high on 10 year. https://gurula.app
Casador Del Oso
Casador Del Oso Nov 29, 2023 9:32AM ET
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If a hard landing is coming, why not sell all your stocks and short the market instead of sounding the alarm bells to warn everyone? Doesn't pass the smell test.
Jeffrey Moore
Jeffrey Moore Nov 29, 2023 9:32AM ET
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It's not going to happen, he's just trying to steer the FED into making the decision that's best for his portfolio.
Tre Hsi
Tre Hsi Nov 29, 2023 9:32AM ET
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Jeffrey Moore  doesn't mean he is wrong though, I mean, he is got a point saying Fed rate at 5% seem high when inflation is at 3% for a few months now
Joe Berger
Joe Berger Nov 29, 2023 9:32AM ET
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Where was he when the Fed kept interest rates too LOW for too long?! Making money hand over fist I’m guessing…Crook
Billy Foos
Billy Foos Nov 29, 2023 9:32AM ET
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Same guy that said “hell is coming” refering to the covid flu.. Forever lost any credibility.
Glenn Pike
Glenn Pike Nov 29, 2023 9:32AM ET
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He covered his short bonds not shorting bonds
me ish
me ish Nov 29, 2023 9:28AM ET
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already way too late and he's already trading the bond market on rates collapsing - that's why he gets the editorial after he's in position
 
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