Cathie Wood says it’s now in a ‘rolled recession’ while the speed of money crashes, but this will help unlock the Fed rates and reduce taxes

• Ark Invest’s Cathie Wood Warned that the economy could be directed to one or two negative quarters in the middle of a “rolling recession” as worrying about the safety of work, encouraging Americans to save money rather than spend it. But the fall will help federal reserves to reduce interest rates and establish Trump’s administration to lower taxes.

The founder and executive director of the ARK INVEST Cathie Wood has been subjected to the short-term appearances of the economy, but expects the federal reserves and Trump administration to enhance.

IN interview with Bloomberg TV Tuesday also noted that she was buying Tesla supplies and crypto property like Coin and Robinhood during the market fall.

The shares have fallen since mid -February because investors are worried that the aggressive tariffs of President Donald Trump and the reduction of labor will transfer the economy to the recession. Forecasts on the Wall Street hiking recession, along with Some put them on about 50%.

“We think we were in a rolled recession and that we will actually see some negative districts here and this is because the speed of money collapses,” said Wood Bloomberg, referring to economic downs that affect different sectors at different times.

She added that worrying about the safety of work forced Americans to save more money and predict one or two negative districts. But in her opinion, this will set the Trump administration to reduce taxes and the Fed to reduce the rates.

The day after Wood spoke, Fed held rates of stable While central bankers reduced growth forecasts for the year and raised their inflation expectations in the midst of larger tariffs.

But politics creators also largely held views for two decreasing rates this year, and Fede’s chairman Jerome Powell generally convinced the tone of Dovish during his press conference on Wall Street that “Fed Road” remained in the game, which means that the rates will fall if the economy is getting worse.

For its part, Wood sees two or three decreasing rates this year – or maybe even more – as inflation further cools down, and food prices, gasoline and some rent are already falling. In addition, innovation also leads to “good deflation”, contributing to further price relief.

“We think the Fed in the second half of this year will have much more degree of freedom than most people think,” she said. “We could see more than the number I just suggested, two to three cuts.”

Meanwhile, Director Doubleline Capital Jeffrey Gundlach said CNBC on Thursday That the decrease in the federal government budget will weaken economic growth and warn that the chance for the recession is greater than most people believe.

“I actually think it is more than 50% in the next few quarters,” Gundlach said. “I think I’m 50 to 60 (percent) where I am.”

Dimmer view of the American economy and stocks, along with a relative effect in the former markets, have eroded belief in the so -called American exceptional.

TireH thinks it’s probably time for investors diversifying from US property, pointing to European and emerging markets.

“I think it will be a long -term trend,” he said.

This story is originally shown on Fortune.com

Source link