The Federal Reserve isn’t going to hike rates as much as markets are currently betting, according to Cathie Wood.
The strategies of ARK Investment Management LLC, where Wood is founder and chief executive officer, have struggled recently amid fear of inflation. The firm’s flagship ARK Innovation ETF is down 45% year to date.
Wood expects inflation to end its spike and then decline in “dramatic” fashion, she said. Such a scenario might give the Fed leeway to boost rates less aggressively than is currently seen.