Ark Invest’s Cathie Wood predicts inflation will see ‘major downside surprises’ in coming months
“You’ve got Europe in recession, China in recession, effectively, and here in the United States, retailers are bulging with inventories which will have to be cleared with discounts,” Wood told FOX Business’ Maria Bartiromo on Friday. “So we think we’re going to see some major downside surprises in inflation during the next three to six months.”
On “Mornings with Maria,” Wood explained how deflating commodity prices and an ongoing “inventory recession” impacts the macroeconomic landscape and the Fed’s next rate decision.
“If you look at commodity prices, the gold price, for example, it actually peaked in August of 2020, and it’s at the lower end of a two-year range, while copper has broken down, oil is breaking down, lumber has crashed, iron ore as well,” Wood explained. “Freight rates out there are suggesting that the supply chains are loosening up quite significantly. The rates are coming down. So we’ve got deflation in the system.