Billionaire investor Bill Ackman is urging the Federal Reserve to quickly lower interest rates, warning of a slowing US economy.
Tariffs and Economic Uncertainty
Ackman, CEO of Pershing Square Capital Management, believes President Trump’s imposition of widespread tariffs (dubbed “Liberation Day”) has created significant economic uncertainty. He argues that businesses are delaying decisions, leading to a slowdown. He sees evidence of this slowdown already and expects it to be more pronounced in the second quarter. Ackman stresses the importance of quickly resolving the tariff issues.
Ackman’s Call for Action vs. Fed Expectations
While Ackman advocates for an immediate rate cut, market predictions suggest a strong likelihood that the Federal Reserve will hold steady at its next meeting on May 7th. The CME Group’s Fed Watch Tool shows a 95.2% chance of no rate change this month.