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

AuthorFrank DeMatteo
Published 11/29/2023, 08:30 AM
Updated 11/29/2023, 08:33 AM
© 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.

Latest comments

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.
very nice
Cut rates to let inflation increase again… great plan
Good luck sir.
Hey; We called 5% high on 10 year. https://gurula.app
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.
It's not going to happen, he's just trying to steer the FED into making the decision that's best for his portfolio.
 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
Where was he when the Fed kept interest rates too LOW for too long?! Making money hand over fist I’m guessing…Crook
Same guy that said “hell is coming” refering to the covid flu.. Forever lost any credibility.
He covered his short bonds not shorting bonds
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
Fed = Crooks if they cut much too soon!!! They already made a Huge mistake 2 years ago when they stupidly said that inflation was temporary, they bankrupt billions of people with inflation, if they do not do their job, they should be sent to Jail this time!!!
yeah, but they own the world including the judges, the police and the jails - they're untouchable - if they can assassinate JFK, and send planes into the Twin Towers, I don't think they're going to go to jail over bad monetary policy
 who is "they"?  can you tell us or do we have to go to the Q website to find out?
IT'S A CONSPIRACY!!!
LOL. GDP revised higher. So far, economy impervious to rate hikes. Lower rates and let inflation fly!
lag effects - massive lag effects -  always take 18 to 24 months for the stuff to hit the fan
Overleveraged hedge fund tool needs more free money for his ponzi scheme
This guy is buying US Stocks and he hopes that price will continue to grow on the upside. A nice good correction will make him see the reality when the overwhelming levels of debts with become unsustainable but aren't they already ?  Wait and See.
he's betting on rates crashing and bond prices spiking - he knows what's coming
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