In @ARKInvest’s view, US monetary policy is significantly more restrictive than in the ‘80s when, to kill inflation, Fed Chair Volcker pushed the Fed funds rate up two-fold from 10% to 20%. Chair Powell and team have increased it 13-fold from 0.25% to 3.25% to slay the dragon. — Cathie Wood (@CathieDWood) September 26, 2022
US dollar strength has been “devastating to the rest of the world and should come back to bite” the country’s competitiveness and economic activity, eventually “forcing the Fed to pivot” away from its restrictive monetary policy, Ark Investment Management CEO and Founder Cathie Wood said in a series of tweets on Monday.
The yield curve “suggests” that US monetary policy has not been this restrictive since the ‘80s. As measured by the 2-year Treasury yield relative to the 10-year Treasury yield, it has inverted by 50 basis points, the 10-year yield at 3.75% compared to the two-year at 4.25%. — Cathie Wood (@CathieDWood) September 26, 2022
