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According to the latest survey, Wall Street investors think that the greatest threat to markets is the Federal Reserve’s policy errors. The central bank struggles with controlling decades-high inflation. CNBC Delivering Alpha investor survey. 

About 400 CIOs and portfolio managers, as well as CNBC contributors to manage money, were surveyed about their views on markets in 2022. It was done this week.

Respondents to the survey said that the Fed could make the bull markets go down, and 33% stated that the risk of a Fed mistake is a serious threat. One in ten respondents cited Russia’s continued aggression after the invasion of Ukraine to be the greatest threat to markets.

The Fed had approved earlier this month a 0.25 percentage point rate hikeThis is the first increase in December 2018. The central bank indicated that they were also planning to increase their reserves. it will be raise rates 10 times — in less than two years — and cut what likely will be trillions off the balance sheet.

Fed Chairman Jerome Powell pledged to take tough action against soaring inflation, suggesting that he would be open for rate increases beyond traditional 25 basis point.

The central bank is not likely to be able create a soft landing, even if the economy is stronger than it currently stands. This has been criticized by many prominent investors.

Carl Icahn was a famed investor who recently spoke out he sees a “rough landing”And he said there could well be a recession.

Jeffery Gundlach is the so-called bond King has criticizedThe Fed’s role is to fight inflation. Recent readings have made Fed’s target of 2% seem “laughable”.

The investor expects the consumer price index to peak at 10% potentially and end this year at 7.5%. CPI February was 7.9% higher than a year earlier. It measures consumer prices for dozens of common goods. the highest reading since 1982.

As for their market outlook, most investors (58%) see flat returns for the S&P 500 in 2022, while 36% believe the equity benchmark could rise about 8% to end the year above the 5,000 level.

Only 6% sees a correction before the year-end to take the S&P 500 below 4,000.