Hedge fund manager who is a multi-billionaire Bill Ackman said raging inflation will only dissipate if the Federal Reserve acts more aggressively or the market sell-off turns into a full-on collapse.

Ackman stated in a series of tweets that there is “no prospect of a material fall in inflation” unless the Fed raises rates aggressively or the stock exchange crashes. This would catalyze an economic crash and destruction.

Manager of Pershing Square’s hedge fund Pershing Square said 2022’s market correction was due to investors’ insecurity that the central bank would squash inflation at a high 40 years. The Fed must “put a stop to soaring prices” in order for market turmoil to end, he said.

Ackman stated that “if Fed fails to do its work, the market will do Fed’s work.” The only solution to today’s inflationary crisis is aggressive monetary tightening, or a complete collapse of the economy.

Markets have been in turmoil this year due to the Federal Reserve’s strictening inflation measures. This has fueled fears of recession. The benchmark interest rate was raised by the central bank by half a percentage pointThis was the boldest step to date, and it took place earlier in this month. The S&P 500 is down about 18% in 2022, and the equity benchmark briefly dipped into bear market territory last week.

Ackman thinks investors will be cheering the Fed’s decision to raise rates faster because of spiraling inflation.

Markets will rise once investors are able to believe that runaway inflation is over. “Let’s pray the Fed does it right,” Ackman stated.

Manager of a hedge fund said that the Fed must show seriousness and immediately raise rates to neutral. He also committed to continuing to increase borrowing costs up until the “inflation genie” is out.

Similar 50-basis point rate hikes are expected at the Fed’s next meeting. The target rate for the current period is between 0.75% and 1%. Next meeting of the Federal Open Market Committee, June 14-15.

Ackman made a dire warning to CNBC on March 20, 2020 as the Covid pandemic was raging. saying “hell is coming”He implored the White House to temporarily shut down the country for a period of time. He made $2 billionThe market will then be your opponent.