“…Cathie Wood has warned of another ‘Great Depression’ if the Fed doesn’t pivot…”
January 13, 2023
“…“The Fed raised rates in 1929 to squelch financial speculation and then, in 1930, Congress passed Smoot-Hawley, putting 50%+ tariffs on more than 20,000 goods and pushing the global economy into the Great Depression,” Wood said. “If the Fed does not pivot, the set-up will be more like 1929.”
The super investor argued that the U.S. central bank is “ignoring deflationary signals.” At the same time, she warned that the Chips Act — designed to support semiconductor manufacturing in the U.S. but restrict it elsewhere — “could harm trade perhaps more than we understand.”
In December, the Fed hiked interest rates by another 50 basis points as expected…”
https://finance.yahoo.com/news/set-more-1929-cathie-wood-183000307.html