Cathie Wood’s Open Letter to Fed Draws Snark

Link: https://www.thinkadvisor.com/2022/10/11/cathie-woods-open-letter-to-fed-draws-snark/

Link to letter: https://ark-invest.com/articles/market-commentary/open-letter-to-the-fed/?utm_content=224025663&utm_medium=social&utm_source=twitter&hss_channel=tw-2398137084

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Excerpt:

Ark Invest founder and CEO Cathie Wood is drawing snarky comments on and off Twitter after posting an open letter to the Federal Reserve challenging the central bank’s aggressive interest-rate hikes.

Wood published the letter on her firm’s website Monday as her ARK Innovation ETF (ARKK) sustained more blows in a year that has seen its returns slide more than 60%. Bloomberg reported Tuesday that the fund, which has fallen more than double the S&P 500′s decline, was down about 11% over three days.

Wood voiced concern the Fed is making a policy error that will lead to deflation and said it seemed to be basing its decisions on two lagging indicators: employment and headline inflation from official reports such as the Consumer Price Index. These variables “have been sending conflicting signals and should be calling into question the Fed’s unanimous call for higher interest rates,” she wrote.

Author(s): Dinah Wisenberg Brin

Publication Date: 11 Oct 2022

Publication Site: Think Advisor