Cathie Wood Calls Fed's 2022 Rate Hikes a Massive Mistake, Backs Warsh After 172,000 Jobs Gain
Updated
Updated · Benzinga · Jun 8
Cathie Wood Calls Fed's 2022 Rate Hikes a Massive Mistake, Backs Warsh After 172,000 Jobs Gain
1 articles · Updated · Benzinga · Jun 8
Summary
Cathie Wood said the Federal Reserve’s 2022 tightening cycle was a “massive mistake” and argued new Chair Kevin Warsh can restore a more stable policy framework.
Wood said the Fed wrongly used higher rates to fight a structural supply shock, worsening supply constraints and fueling years of avoidable market volatility.
Warsh, in her view, is more supply-side oriented and less likely to treat strong growth and employment as inflationary threats, especially as AI and robotics lift productivity.
Her comments followed a May payrolls report showing 172,000 new jobs, which she called a “barnburner” even as markets sold off on fears rates would stay higher for longer.
Jim Bianco pushed back on the broader lower-rates-is-better narrative, arguing the reason rates rise matters more than the level because artificially cheap money can breed speculation and malinvestment.