Bill Ackman Calls Fed's Latest Rate Hike a Mistake in Post-ChatGPT Era
Updated
Updated · Business Insider · Sep 25
Bill Ackman Calls Fed's Latest Rate Hike a Mistake in Post-ChatGPT Era
3 articles · Updated · Business Insider · Sep 25
Summary
Bill Ackman said the Federal Reserve’s rate increase last week was the wrong move, arguing AI has changed the inflation playbook the central bank relies on.
In an X post, the Pershing Square founder said higher rates may no longer curb demand because spending on intelligence, compute and energy could stay strong despite tighter policy.
Ackman warned the new hiking cycle could even worsen inflation by embedding higher interest costs across the economy and forcing the Fed into further increases.
The post drew pushback from users who cited inflation above 9% in 2022-2023 as evidence hikes worked, while Ackman argued the economy is now in a different, post-ChatGPT regime.
His criticism adds to broader skepticism over the latest hike, with some economists already arguing tighter policy would hurt consumers while doing little to address supply shocks such as war-driven oil prices.