Cathie Wood Calls Fed's 2022 Rate Hikes A 'Massive Mistake,' Says Kevin Warsh Will Fix It

Ark Invest CEO Cathie Wood has launched a sharp critique of U.S. monetary policy, branding the Federal Reserve‘s 2022 interest rate hikes a “massive mistake” while asserting that newly appointed Chairman Kevin Warsh will successfully fix it.
The Fed’s Blunder
Wood argued that when history is viewed with enough hindsight, the aggressive rate-tightening cycle initiated four years ago will be recognized as a severe economic policy error.
She stated that the central bank wrongfully attempted to solve a structural supply shock with higher interest rates, which only “hurt supply even more.”
This misguided strategy resulted in a multi-year supply shock and unnecessary market volatility, an outcome Wood believes could have been avoided with a supply-side framework rather than relying on the outdat