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Following the United Nations Conference on Trade and Development (UNCTAD) report that the U.S. Federal Reserve should stop raising rates, Ark Invest CEO Catherine Wood has published an open letter to the U.S. central bank asking the institution to stop raising interest rates. Wood says that the \u201cunprecedented 13-fold increase in interest rates\u201d has not only shocked the world but it\u2019s also pushing the economy toward risking a \u201cdeflationary bust.\u201d<\/strong>\n<\/p>\n \n Wood\u2019s letter says that the Fed\u2019s concept of reducing upstream price deflation is \u201clikely to turn into downstream deflation.\u201d Furthermore, the Ark Invest CEO says that the Fed\u2019s decisions are based on two \u201clagging indicators,\u201d which include the inflation rate and employment metrics.<\/p>\n The letter from the CEO follows the recent report<\/a> published by the United Nations Conference on Trade and Development (UNCTAD) which also wants the Fed to stop hiking rates. UNCTAD estimates with each Fed rate hike, the economic output of wealthy countries declines by 0.5% and for poorer countries, it declines by 0.8% for a duration of three years.<\/p>\n Both Wood\u2019s and UNCTAD\u2019s complaints are also akin to the criticism the Federal Reserve has received from U.S. Senator Elizabeth Warren (D-Mass). Warren complained<\/a> about the Fed raising the federal funds rate and she further discussed<\/a> the problem with CNN. Warren said at the time she was \u201cvery worried\u201d that the Fed\u2019s rate hikes will fuel a U.S. recession.<\/p>\n Ark Invest\u2019s Wood believes that the rate hikes could cause a deflationary spiral. \u201cCould it be that the unprecedented 13-fold increase in interest rates during the last six months\u2013\u2013likely 16-fold come November 2\u2013\u2013has shocked not just the US but the world and raised the risks of a deflationary bust?\u201d Wood asks in the open letter to the Fed published on Monday.<\/p>\n What do you think about Ark Invest CEO Catherine Wood\u2019s letter to the Federal Reserve concerning the recent rate hikes? Let us know what you think about this subject in the comments section below. <\/strong><\/em><\/p>\nArk Invest\u2019s Catherine Wood Says Fed\u2019s Last 75bps Rate Hike Was \u2018Surprising,\u2019 Letter Says 13 to 16-Fold Increase in Benchmark Bank Rates Is Risky<\/h2>\n
\nArk Invest CEO Catherine Wood has published an open letter to the Federal Reserve<\/a> which notes that the central bank\u2019s aggressive benchmark bank rate hikes have been risky. Wood\u2019s letter says the \u201cFed\u2019s last decision to increase the Fed funds rate by 75 basis points was surprising.\u201d<\/p>\n