Hike rates

Why Cathie Wood says the Fed won’t raise rates as much as markets bet

The founder and CEO of ARK Investment Management Cathy Wood says there could be a surprise if Federal Reserve interest rates don’t rise as much as the market had expected.

Speaking at the Seedly Personal Finance Festival in Singapore, Wood said: “We think the Fed is getting a lot of messages right now that they shouldn’t tighten too much.”

Wood expects inflation to end its peak and then decline “dramatically”. The company has struggled amid fear of inflation, she added.

Also Read: Cathie Wood Cuts Twitter Stake by $5.3 Million Amid Takeover Bids for Elon Musk and Others

Wood’s innovation exchange-traded fund ARK has had a tough year so far, ARK Innovation ETF (ARCA: ARKK) is down 45% so far in 2022 and 21% last month.

The Nasdaq 100 is down 19% in 2022 and the S&P 500 is down 10% for the year.

However, investors appear to be positive about the company’s performance and have invested more than $658 million in the fund this year as of Thursday, including about $59 million last week, according to FactSet data.

Inflation in the United States is at its highest level in four decades. The S&P flash US services index fell in April from 58.0 to 54.7, a three-month low.

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